Millionaire Savings Calculator

Find out how much you need to invest to reach $1 million by your target age

Your Information

$50,000

$0

7%

7% is the average return for index funds over the long term

Please fill in all required fields to see your results

Millionaire Age Reference Table

This table shows the age at which you'll become a millionaire based on your starting age and annual savings amount (assuming 7% annual returns with compounding)

You Can Be A Millionaire At This Age......Starting At This Age

How Does This Work?

The Power of Compound Interest

Compound interest means your money grows faster over time because you earn interest on your interest. It's like a snowball rolling downhill, getting bigger and bigger as it collects more snow.

The Formula We Use

For compound interest, we use this formula:

FV = P * (1 + r/n)^(n*t) + PMT * (((1 + r/n)^(n*t) - 1) / (r/n))

Where:

  • FV = Future value ($1,000,000)
  • P = Initial savings
  • PMT = Annual savings (what we're calculating)
  • r = Annual interest rate (e.g., 7% = 0.07)
  • n = Number of times interest is compounded per year (1 for annual)
  • t = Number of years (target age - current age)

Why 7% Interest Rate?

We use 7% as the default interest rate because it's the approximate average annual return of the S&P 500 index over the long term (after adjusting for inflation). Index funds that track the S&P 500 are a popular and relatively low-risk way to invest for the long term.

Tips for Reaching Your Goal

  • Start early: The sooner you start saving, the less you need to save each month.
  • Be consistent: Regular contributions are key to building wealth.
  • Increase your savings rate: Try to save a higher percentage of your income as your salary grows.
  • Invest wisely: Consider low-cost index funds for long-term growth.