This tool helps you determine how long it will take to become a millionaire based on your current savings, monthly contributions, and expected annual returns. Ideal for those planning their financial future.
All calculations are based on compound interest formulas and financial principles. For further reading, refer to Investopedia's guide on compound interest.
The formula used is: FV = P \times (1 + r)^t + (PMT \times ((1 + r)^t - 1) / r)
For an initial investment of $10,000, with monthly contributions of $500, and an expected annual return of 6%, it will take approximately 26 years to accumulate $1,000,000.
The calculator uses standard financial formulas and assumptions. Exact results depend on real-world variables.
This version assumes constant monthly contributions. A more advanced version would allow for variable inputs.