This millionaire calculator allows you to input your current savings amount as your starting point. It's OK if your starting point is $0, however, you will need to be able to make an assumption of what you believe is realistic to include as a monthly contribution amount.
The monthly contribution amount has a sliding toggle so you can adjust the figures anywhere from $25 to $10,000 per month. The average return field also has a sliding toggle. Keep in mind, the range is from 1% to 10% - choosing 10% may make things look better, but it might not be realistic. Your actual return may vary from year to year based on the type of investments or savings accounts you will be using.
I ran a scenario as an example. Let's say, there is $25,000 available now and I expect to add $1,000 per month and expect a 7% average annual return. The calculator tells me it will take 25 years and 9 months for me to accumulate $1M.
If I start with $250,000, rather than $25,000, the result would be a one million dollar valuation in only 14 years and 9 months.
This is a simple calculator where you input specific pieces of information and it will do the calculation based on what you put in. This calculator is different because it asks what percentage to use as the inflation factor. The inflation factor tries to explain that a million dollars many years in the future is not going to be able to purchase as much as a million dollars would today.
To use this calculator, you will need to key in your initial starting amount, monthly deposit expectations, average annual return, average annual inflation, and final amount desired. If you are not sure which figures to use, I have several articles which can explain average return ranges, or talk with your financial advisor.
In the feedback section, it will tell you how many years it will take to reach your goal. It will also give you a warning that even though your goal may be one million dollars, the "today's dollars" value will likely be considerably less due to inflation.
This website has a ton of resources for you to use. The millionaire calculator has been replaced by other calculators. I recommend going through the AARP Retirement Calculator because it will easily walk you through scenarios that will also include your Social Security benefits and your spending habits in retirement. You will need to click on it and "Go" to get to the three step evaluation.
The three steps include learning about you, your retirement income, and looking at your options. This evaluation is more in depth and it will provide a customized look at where you are heading without making any adjustments. Remember, if you are not satisfied with the result, you may still have time to save more, spend less, or work longer.
If you find you are on track, congratulations!
The Top 3 Millionaire Calculators
These are the three best millionaire calculators that show how much you need to save in order to become a millionaire. Some account for taxes and/or inflation and some don't. Either way, they can help show you what it takes to reach your millionaire goals.