How Much Do You Need To Save a Month To Get $1,000,000? – Technologist

Who wants to be a millionaire? Maybe the better question is, when do you want to grow your retirement savings to $1 million?

Team Clark’s savings goal calculator will tell you with a few taps of your keyboard. Then we’ll reveal how much money per month you need to set aside.

Enter your current savings, estimated rate of return and your timetable for saving $1 million. Our calculator will tell you how much you need to save per month to reach your million-dollar milestone.

Let’s look at an example.

How Much Do You Need To Save Per Month To Get $1 Million?

document.addEventListener(‘DOMContentLoaded’, function () {

calculate_savings_goal_how_much();

var loanForm = document.getElementById(‘clark_sg_form’);
var inputs = loanForm.querySelectorAll(‘input, select’);
// var amortSchedule = document.getElementById(‘amortization-schedule’);

inputs.forEach(function (input) {
input.addEventListener(‘keyup’, calculate_savings_goal_how_much);
input.addEventListener(‘change’, calculate_savings_goal_how_much);
});

});

function calculate_savings_goal_how_much(selectedFieldEvent) {

clark_calc_init_amount_field(selectedFieldEvent);

// const initialDeposit = clark_calc_convertToNumber(initialDepositInput.value);
const savingsGoal = clark_calc_convertToNumber(document.getElementById(‘clark_sg_savingsGoal’).value);
const currentSavings = clark_calc_convertToNumber(document.getElementById(‘clark_sg_currentSavings’).value);
const annualRateOfReturn = parseFloat(document.getElementById(‘clark_sg_annualRateOfReturn’).value);
const timeframe = document.getElementById(‘clark_sg_timeframe’).value;
const timeframeUnit = document.getElementById(‘clark_sg_timeframeUnit’).value;

const savingsInfo = calculateSavingsGoal({
savingsGoal,
currentSavings,
annualRateOfReturn,
timeframe,
timeframeUnit
});

if (savingsInfo.monthlySavingsNeeded < 0) {
savingsInfo.monthlySavingsNeeded = 0;
}

if (savingsInfo.yearlySavingsNeeded < 0) {
savingsInfo.yearlySavingsNeeded = 0;
}

document.getElementById('clark_sg_monthlySavingsNeeded').textContent = clarkCalculators_formatMoney(savingsInfo.monthlySavingsNeeded);
document.getElementById('clark_sg_yearlySavingsNeeded').textContent = clarkCalculators_formatMoney(savingsInfo.yearlySavingsNeeded);

if (timeframeUnit === 'months') {
document.getElementById('clark_sg_yearResults').style.display = 'none';
}
else {
document.getElementById('clark_sg_yearResults').style.display = '';
}
}

function calculateSavingsGoal({
savingsGoal,
currentSavings,
annualRateOfReturn,
timeframe,
timeframeUnit // 'years' or 'months'
}) {

// Convert annual rate of return to monthly and timeframe to months if necessary
const monthlyRateOfReturn = annualRateOfReturn / 12 / 100; // Convert percentage to decimal
const months = timeframeUnit === 'years' ? timeframe * 12 : timeframe;

let monthlySavingsNeeded;
if (monthlyRateOfReturn === 0) {
// If the rate of return is 0, use a simpler calculation
monthlySavingsNeeded = (savingsGoal – currentSavings) / months;
} else {
monthlySavingsNeeded = (savingsGoal – currentSavings * Math.pow(1 + monthlyRateOfReturn, months)) * monthlyRateOfReturn / (Math.pow(1 + monthlyRateOfReturn, months) – 1);
}

const yearlySavingsNeeded = monthlySavingsNeeded * 12;

// Round the results to one decimal place
monthlySavingsNeeded = Math.round(monthlySavingsNeeded * 10) / 10;
const yearlySavingsNeededRounded = Math.round(yearlySavingsNeeded * 10) / 10;

return {
monthlySavingsNeeded: monthlySavingsNeeded,
yearlySavingsNeeded: yearlySavingsNeededRounded
};
}

Note: This calculator is completely interactive! Enter your numbers to see how much in monthly savings it will take to reach your savings goals.

In this example, you’ve set aside $10,000. But you want to grow that number to $1 million in 10 years. Assuming a 7% annual return, you need to set aside $5,661.40 per month — or $67,936.90 per year — to reach seven figures.

Of course, you can play with all the variables in our savings goal calculator. Perhaps your goal is $100,000 in three years for a down payment on a house. Or $5 million in 20 years for retirement.

Our calculator gives you two ways to calculate your path — based on how much you save per month and based on how long you have until your goal date.

Final Thoughts

For many, the idea of saving $1 million is aspirational but feels unrealistic. Our calculator will give you concrete numbers to help you put it in realistic terms.

Just remember that Clark thinks the most important thing is to start saving. If you haven’t already, throw in $20 on your next paycheck. Once you’ve started saving, try to increase the amount of your paycheck you set aside by 1% every six to 12 months.

Don’t overwhelm yourself. Make a plan, start small and work toward it a little more over time.

The post How Much Do You Need To Save a Month To Get $1,000,000? appeared first on Clark Howard.