What is the Millionaire Savings Calculator?
This calculator tells you exactly how much you need to set aside each month to reach a savings goal — by default $1,000,000. It accounts for the money you've already saved, your expected annual investment return, and how many years you have to get there. It is useful for retirement planning, wealth-building targets, or any large savings objective.
How to use it
Enter your savings goal, your current balance, the annual rate of return you expect (as a percentage), and the number of years until your deadline. The calculator compounds your existing savings forward, subtracts that from your goal, and then computes the level monthly deposit needed to close the gap.
The formula explained
The core of the tool is the future-value-of-an-annuity equation solved for the payment: $$\text{PMT} = \frac{\text{FV} \times r}{(1 + r)^{n} - 1}$$ Here \(r\) is the monthly rate (annual rate ÷ 12), \(n\) is the number of months (years × 12), and FV is the amount still needed after current savings grow. When the return is 0%, the formula simplifies to \(\text{FV} \div n\).
Worked example
Goal $1,000,000, no current savings, 7% annual return, 30 years. The monthly rate is \(0.07/12 \approx 0.0058333\) and \(n = 360\) months. \((1.0058333)^{360} \approx 8.11650\), so the denominator is \(7.11650\). $$\text{PMT} = \frac{1{,}000{,}000 \times 0.0058333}{7.11650} \approx \$819.66 \text{ per month}$$ Over 30 years that is about $295,000 contributed and roughly $705,000 in growth.
FAQ
What return should I assume? A diversified stock portfolio has historically averaged around 7% after inflation, but markets vary — try several rates.
What if I already have savings? The tool grows your current balance at the same return and only requires you to fund the remaining gap, lowering the monthly amount.
Does it account for taxes or inflation? No. Results are nominal pre-tax figures; adjust your target or return assumption to reflect inflation and taxes.
