To have $1,000,000 at 65 with a 7% return, you need to invest $381 a month starting at 25, but $1,234 a month starting at 40.
- 4%
- 5%
- 6%
- 7%
- 8%
- 10%
| Starting age | 4% | 5% | 6% | 7% | 8% | 10% |
|---|---|---|---|---|---|---|
| 20 | $662 | $493 | $363 | $264 | $190 | $95 |
| 25 | $846 | $655 | $502 | $381 | $286 | $158 |
| 30 | $1,094 | $880 | $702 | $555 | $436 | $263 |
| 35 | $1,441 | $1,202 | $996 | $820 | $671 | $442 |
| 40 | $1,945 | $1,679 | $1,443 | $1,234 | $1,051 | $754 |
| 45 | $2,726 | $2,433 | $2,164 | $1,920 | $1,698 | $1,317 |
| 50 | $4,064 | $3,741 | $3,439 | $3,155 | $2,890 | $2,413 |
| 55 | $6,791 | $6,440 | $6,102 | $5,778 | $5,466 | $4,882 |
How it is computed
Monthly saving = 1,000,000 × i ÷ ((1 + i)^n − 1), with i the annual return ÷ 12 and n the months between the starting age and the target age. Starts from zero; taxes, fees and inflation are not included.
FAQ
Is $1,000,000 enough to retire?+
Under the 4% rule it supports about $40,000 a year before tax. Inflation means a million in 40 years buys much less than today.
Why does starting earlier help so much?+
Money saved at 25 compounds for 40 years; each dollar invested early does the work of several dollars invested at 45.