How much to save monthly to reach $500k in 30 years?
To reach $500,000 in 30 years at a 7% average annual return, save about $410 a month. You'd put in $147,544 of your own money. Compounding adds the other $352,456.
The earlier you start, the more compounding does for you. Over 30 years at a 7% average annual return, $410/month grows to $500,000, and only $147,544 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
- 30 yr
Frequently asked
How much do I save monthly to reach $500k in 30 years?
About $410 a month at a 7% average annual return, starting from zero.
How much is contributions vs. growth?
You contribute $147,544; the remaining $352,456 is investment growth.
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