Becoming a millionaire

It may surprise you how quickly you can accumulate a million dollars. Use this calculator to determine the annual amount you would have to set aside each year to reach a million dollars and reach your goal to be a millionaire.

Age and Savings

Current age ?

Your age today.

Age to become millionaire ?

The age by which you want to reach your savings goal.

Initial balance or deposit ?

Savings you already have set aside toward this goal.

Assumptions

Before-tax return on savings ?

Expected annual investment return before taxes.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Advanced options 3

Annual increase on new savings ?

How much you plan to increase your yearly contribution amount, year over year.

Marginal tax bracket ?

Your top tax rate, applied to taxable investment growth each year.

Table of Federal Income Brackets and Rates. Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more.

Anticipated inflation rate ?

Expected average annual inflation over the savings period.

10 Year Historic Inflation Rate. 10-year U.S. inflation average 2.9% 2015 0.1%, 2016 1.3%, 2017 2.1%, 2018 2.4%, 2019 1.8%, 2020 1.2%, 2021 4.7%, 2022 8.0%, 2023 4.1%, 2024 2.9% Source U.S. Department of Labor

Enter your values and select Calculate.

The inflation-adjusted goal shows what $1,000,000 of today's purchasing power will actually cost by the age you chose, and the required savings figures tell you what it would take, in today's plan, to get there. There is no single right number here — it depends on how long your money has to grow and how much you're willing to set aside each year.

Two inputs move these results the most: the before-tax return you assume and the number of years between now and your target age. A small change in either one, especially the return, can shift the required annual savings substantially, since more time or a higher return means compounding does more of the work for you.

This model does not account for market volatility, changes in tax law, job loss, or shifts in your own savings rate over time. It also treats your tax bracket and return as constant every year, which real life rarely does. Treat the figures as a planning anchor, not a forecast.

It's worth revisiting this calculation whenever your income changes, you get a sense of a different expected return, or inflation expectations shift meaningfully. Bringing these numbers to a financial advisor can help translate them into an actual account strategy. Having a target at all, and checking it periodically, is most of the work — the rest is consistency.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.