How this calculation works
The tool checks each month-end for up to 100 years. Rates are nominal annual assumptions compounded monthly. Deposits are fixed. The goal is nominal dollars and does not automatically increase for inflation. A personal net worth of $1 million can be very different from $1 million of invested assets.
A worked example
With no return, no starting balance and monthly contributions of $1,000, reaching $1 million takes 1,000 months: 83 years and 4 months. Positive growth changes the calculation, but actual returns vary.
Common questions
Does the target account for inflation?
No. The target is a nominal dollar amount. Set a larger target if you want to explore a future purchasing-power goal.
Why can the goal be beyond 100 years?
Low contributions or negative returns can prevent reaching the target within the modeled horizon. The tool reports that outcome instead of promising a date.
Go a little deeper.
Read the supporting guide for definitions, examples and common mistakes.
Read the guide ↗Educational tool, not individualized financial, investment or tax advice. Estimates depend on your inputs and do not guarantee future results.
Background: Investor.gov compound interest calculator. NetWorthXI’s implementation and stated assumptions determine these results.