How this number is made
A million is a round target, not a retirement plan. This page solves for the years a starting balance and a monthly deposit need to reach $1,000,000 at a constant return, compounded monthly. Inflation will make a million worth less by the time you arrive. The return is the assumption doing most of the work.
- If you will not add money, leave the monthly deposit at zero. You then need a positive return and a starting balance.
- Try the return at a number you can defend, then again a few points lower.
Formula
Solve n in the monthly future-value formula so the balance equals $1,000,000.
Worked example
With the figures already in the form, years to $1,000,000 is 24.5.
Questions
Is a million enough?
That depends on spending and on how long the money has to last. The withdrawal pages start from a portfolio. This one only times the arrival.
What if it says not reachable?
The deposit is zero and the return is zero or negative, or the math never crosses a million. Raise the deposit or the return.