How much to save monthly to reach $1M in 20 years?
To reach $1,000,000 in 20 years at a 7% average annual return, save about $1,920 a month. You'd put in $460,717 of your own money. Compounding adds the other $539,283.
The earlier you start, the more compounding does for you. Over 20 years at a 7% average annual return, $1,920/month grows to $1,000,000, and only $460,717 of that is money you contributed.
Stretch the horizon and the monthly number drops fast, because your earlier dollars have longer to compound. These are nominal figures, before inflation.
Assumptions
- Annual return
- 7%
- Time horizon
- 20 yr
Frequently asked
How much do I save monthly to reach $1M in 20 years?
About $1,920 a month at a 7% average annual return, starting from zero.
How much is contributions vs. growth?
You contribute $460,717; the remaining $539,283 is investment growth.
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