How to Calculate the Length of Time it Takes to Become a Millionaire

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Everybody wants to know how long it’ll take to become a millionaire. This Millionaire Calculator uses annual return and annual inflation to give you a very rough estimate of the length of time it will take for you to achieve that seven figure mark.

Step 1

Click on the millionaire calculator link above. Once the calculator opens, you are ready to insert your data.

Step 2

Insert the initial amount of money you’ll be starting with. This includes investing accounts, checking accounts, savings accounts. etc.

Step 3

Insert a monthly deposit. You can leave this slot blank if you aren’t going to deposit any money on a monthly basis.

Step 4

Insert the annual return average. The default setting is pretty high and you might want to bring it down a little. I understand that the calculator is very basic and that most individuals have a diversified portfolio with different return averages. The calculator should only be used as a guide and as such, a very modest rate of return should be used. 5% is a very achievable rate of return over a long period of time.

Step 5

Insert the annual inflation average. Looking at past charts, the annual average hovers around 3% over the course of a 50 year span.

Step 6

Insert the final amount desired and in our case it’s the $1 000 000 mark. Add ore or less if you’d like.

Step 7

Use this calculator as a fun tool to see what you can achieve by adding X amount per month at X amount of interest. Have fun and enjoy.

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Filed Under Banking, Saving Money, Saving for Retirement 

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