[Calculator] When You Will Become A Millionaire?

If you’ve read my book You’re Already a Wealth Heiress, Now Think and Act Like One! 6 Practical Steps to Make It a Reality Now!, then you know all about the Wealth Building Formula and creating your Millionaire Action Plan (MAP)™ where I share with you how to get to $1 million, no matter how little you have or how late you are starting.

Here are two different calculators to help you determine when you will become a millionaire.

The first one calculates exactly $1 million, the other one calculates the amount your money will grow to, whether that’s more or less than $1 million. It has more flexibility.

Let’s calculate when you’ll become a millionaire.

The first calculator looks like this:

There are 3 parts to the calculation: current savings, contribution per month, and average return.

How to Use the Millionaire Calculator

To calculate when you’ll become a millionaire, use the calculator and enter the amount of money you’re starting with in the

“current savings” box (add what’s in your 401(k), IRA’s, investment accounts, etc.), then slide the bars for the

contribution per month and the compounding rate. You have to make an assumption here. If you are investing in the

stock market, the long-term historical rate is around 10% annually. If you are investing in real estate, the long-

term historical rate is closer to 3% (I realize some local real estate markets have performed much better than that

– good for you!)

Compound Interest Calculations

What if you’re already a millionaire or if you want to make monthly additions to your investment account?

Then you’ll need a different calculator than the one above, that has more flexibility for you to input numbers. It’s a little bit more complicated, but easy to use once you get the hang of it.

It looks like this:

Steps to Calculate

1. Your “current principal” is the amount in all of your investments, 401(k)’s, IRA’s, etc.
2. “Annual addition” is only if you are going to add money to your account every year. For example, you have $300,000 of current principal and you are adding $500 a month to your investment accounts, then you would put “6000” in the “annual addition” ($500 x 12 months). If you just want to see what $300,000 will grow to in 20 years, then put nothing in the “annual addition” box.
3. “Years to grow” is how many years you are planning to invest and compound the money. It could be how many years you have until retirement, for example. If you are age 42 and plan to retire at age 65, then enter 23 in the box.
4. The “interest rate” is subjective because you’re going to have to estimate what rate you can earn on your money. A good rule of thumb is if you are investing in the stock market, assume a 10% average annual rate of return. If you are calculating a return on real estate investments, historically the long-term average has been 3%. If your investment returns are higher or lower, go ahead and use your rate of return.
5. Leave the “1” in the compound interest box. Your money will compound on an annual basis, once per year.
6. Leave the default additions at the start of the year.
7. Click on “calculate”.

Your Results

You will usually find you will have more or less money than you expected!

It’s a good idea to play with the calculator, trying longer and shorter years and higher and lower interest rates.

For example, if you calculated $100,000 for 15 years at 10%, see what 30 years

will do to your compounding.

Compounding longer makes a big difference! Play with it and have fun.

If you have a serious shortage of funds and don’t know what to do, check out my book for suggestions no matter what

your age or how much money you have, there is a solution!

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