Wealth Growth Calculator
Visualize your path to financial independence. See milestones, FIRE number, and inflation impact.
Your Wealth Plan
Wealth Milestones
Rate Comparison (20 years)
Growth Visualization
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The Snowball Effect of Wealth
Building wealth is like rolling a snowball down a hill. At first, it's small and grows slowly. But as it gets bigger, it gathers more snow with every turn, until it becomes an unstoppable force. That's compound growth—and it's how ordinary people build extraordinary wealth.
This calculator shows your complete wealth journey: milestones you'll hit, when you'll reach financial independence (FIRE), and how much passive income your wealth can generate.
How Long to Reach $1 Million?
| Monthly Investment | 8% Return | 10% Return | 12% Return |
|---|---|---|---|
| $500/month | 36 years | 30 years | 26 years |
| $1,000/month | 28 years | 24 years | 21 years |
| $2,000/month | 22 years | 19 years | 17 years |
| $3,000/month | 18 years | 16 years | 14 years |
Starting from $0. Each additional $500/month shaves years off the journey.
The FIRE Movement
Example: If you spend $60K/year, your FIRE number is $1.5M. At that point, you can withdraw 4% ($60K) annually without running out of money.
Key Concepts
Wealth Milestones
First $100K is hardest. Each milestone after comes faster as compound growth accelerates.
Passive Income
Your wealth can generate income forever. $1M at 4% = $40K/year without touching principal.
Inflation Impact
$1M in 30 years = ~$400K in today's purchasing power. Always think in real (inflation-adjusted) terms.
Rate Matters
2% higher return over 30 years can mean 40%+ more wealth. Optimize fees, stay invested.
Calculator Features
Frequently Asked Questions
What is a realistic wealth growth rate?
Depends on your investment mix: Savings/Bonds only: 4-5%. Balanced (60/40): 6-7%. All-Stock Portfolio: 8-10% (S&P 500 historical average). Aggressive Growth: 10-12% (possible but volatile). For conservative planning, use 7-8%. Never plan with 12%+—you might fall short. The rate difference matters enormously: $2,000/month for 30 years: At 7% = $2.4M. At 10% = $4.0M. That's $1.6M difference from just 3% higher return!
What is the FIRE number and how is it calculated?
FIRE = Financial Independence, Retire Early. Your FIRE number is 25× annual expenses (based on 4% safe withdrawal rate). If you spend $50,000/year: FIRE number = $1,250,000. At that amount, you can withdraw 4% ($50K) annually and statistically never run out of money. Variations: Lean FIRE: $40K expenses → $1M target. Regular FIRE: $60K expenses → $1.5M target. Fat FIRE: $100K expenses → $2.5M target. Coast FIRE: Enough invested that you can stop contributing and still reach FIRE by retirement age.
What is the 4% rule for passive income?
The 4% rule states you can withdraw 4% of your portfolio annually and it should last 30+ years based on historical data (Trinity Study). Example: $1,000,000 portfolio → $40,000/year passive income. Monthly: $3,333. This accounts for inflation adjustments and market volatility. Critics say 3.5% is safer in current low-return environment. Our calculator shows your potential passive income based on projected wealth.
How does inflation affect my wealth projection?
Inflation erodes purchasing power over time. $1M in 30 years at 3% inflation = $412K in today's dollars. This means: Nominal wealth: What the number says. Real wealth: What it can actually buy. Our inflation adjustment shows the 'real' value of your projected wealth. Always think in today's dollars for goal planning. If you need $50K/year today, you'll need ~$121K/year in 30 years at 3% inflation.
How long does it take to become a millionaire?
Depends on starting point, contribution, and return. Starting from $0 at 10% return: $500/month: 30 years. $1,000/month: 24 years. $2,000/month: 19 years. $3,000/month: 16 years. Starting with $100,000 already: $2,000/month at 10%: 13 years. Starting earlier matters more than starting with more. Time is your biggest advantage—compound growth accelerates dramatically in later years.
Why does wealth accelerate in later years?
Compound interest is exponential, not linear. Example: $2,000/month at 10% for 30 years = $4M. Year 10: $409K (10% of journey). Year 20: $1.5M (37% of journey). Year 30: $4.0M (100%). The last decade added $2.5M—more than the first 20 years combined! This is why 'stay the course' is crucial. Selling during a downturn resets your compound clock.
Should I focus on increasing income or reducing expenses?
Both matter, but reducing expenses has a double benefit: (1) You save more now. (2) Your FIRE number drops (25× lower expenses). Example: Earning $100K, spending $60K → saving $40K/year. FIRE = $1.5M. If you cut expenses to $50K → saving $50K/year. FIRE = $1.25M. You reach FIRE faster AND need less to get there. Of course, income growth has higher ceiling than expense cutting. Ideal: Increase income, keep lifestyle inflation low.
What's the difference between net worth and wealth?
Net worth = Assets - Liabilities. Everything you own minus everything you owe. Wealth is often used synonymously, but sometimes means: Investable assets (excluding home equity). Or income-generating assets specifically. For this calculator: Enter total investable net worth. Don't include home value unless you plan to sell it. Include: Stocks, bonds, retirement accounts, savings. Exclude: Primary residence, cars, personal items.
How do I increase my investment contributions over time?
Best strategy: Increase with every raise. Got 3% raise? Increase contributions by 3%. You won't feel lifestyle change but wealth builds faster. Impact: Starting $2,000/month, increasing 3%/year, 10% return, 30 years. Fixed contributions: $4.0M. 3% annual increase: $5.8M. That's 45% more from small annual increases! Also increase when: Debt is paid off. Kids graduate. Mortgage is paid.
What if I'm starting late (40s or 50s)?
It's never too late, but strategy differs: (1) Maximize tax-advantaged accounts (401k catch-up contributions after 50). (2) Higher savings rate is more important than return rate at this stage. (3) Consider working a few extra years—each year adds contributions AND delays withdrawals. (4) Be realistic about return targets—you have less time to recover from downturns. Starting at 45 with $200K, saving $3K/month at 8%: Age 55: $675K. Age 60: $1.1M. Age 65: $1.6M. Still achievable!