The Million Dollar Question
How long does it take to save a million? The answer depends on three variables: how much you start with, how much you save monthly, and what return rate you achieve.
Realistic Scenarios
| Monthly Savings | Return Rate | Years to $1M |
|---|---|---|
| $500 | 8% | 30.5 years |
| $1,000 | 8% | 23.5 years |
| $2,000 | 8% | 17.5 years |
| $3,000 | 8% | 14 years |
| $5,000 | 8% | 10.5 years |
| $1,000 | 12% | 19 years |
The Math
To find how many months (n) until you reach a target:
// Monthly rate
r = annualRate / 12
// Months to target with monthly contribution PMT
n = log((target * r + PMT) / (initial * r + PMT)) / log(1 + r)
// Example: $1,000/month at 8%, starting from $0
r = 0.08/12 = 0.00667
n = log((1000000 * 0.00667 + 1000) / (0 + 1000)) / log(1.00667)
n = 282 months = 23.5 yearsKey Insights
- The first $100K is the hardest: It takes ~7 years at $1,000/month. But the second $100K takes only ~4.5 years because your money is working harder
- Increasing income matters more than cutting expenses: Saving an extra $500/month shaves off 5+ years. No amount of frugality alone can match higher contributions
- Consistency beats timing: Regular monthly investing outperforms trying to time the market in almost all historical scenarios
- Inflation adjustment: $1M in 25 years will buy less than $1M today. Adjust your target for inflation (use ~3% as a baseline)
Three Levers to Pull
- Save more: Increase your savings rate by earning more or spending less
- Earn more return: Higher returns (with higher risk) accelerate growth
- Start earlier: Time is the most powerful lever due to compounding
Plan your path to financial independence with the PureTools First Million Calculator. Enter your current savings, monthly contribution, and expected return to see exactly when you'll hit your target.