How to save a million: monthly numbers for 10 to 30 years
A million is a round number that sounds out of reach. Until you divide it by months.
In short
To save a million in ten years without interest you need 8 334 a month; in twenty years, 4 167; in thirty, 2 778. With interest it is far less, because interest earns interest: at a seven percent annual return, about 5 778 a month for ten years, 1 920 for twenty and 820 for thirty. The biggest lever is time — the earlier you start, the less you need each month.
"How to save a million dollars" usually comes with a timeline attached: in ten years, in twenty. The answer depends almost entirely on that timeline, far more than on the size of your salary.
How much a month, without interest
10 years
8 334 a month
A high income
20 years
4 167 a month
Still a lot
30 years
2 778 a month
Possible for some
That is a million divided by the number of months, with nothing earned on top. On these numbers alone, a million looks like a goal for high earners only.
What interest changes
Money that earns a return does part of the work itself. At an illustrative seven percent a year, compounded monthly:
10 years
5 778 a month
A third of the million is interest
20 years
1 920 a month
More than half is interest
30 years
820 a month
Most of it is interest
This is compound interest: the return is earned on past returns too. Over a short period it changes little; over decades it does most of the work. That is why the same million costs 820 a month if you start thirty years out and 5 778 if you start ten years out.
Seven percent is an example for the calculation, not a promise: real returns depend on where the money is, vary from year to year and can fall below inflation. Higher returns come with more risk. Where to keep savings is covered in where to keep your savings.
A million in thirty years is worth less
In thirty years, a million will buy much less than today. If the goal is to pay for something specific, tie it to that, not to the round number, and review it every year. More in budgeting with inflation.
How to start
- Pick the timeline where the monthly amount fits your budget. Not the most ambitious one — the one you will keep.
- Set the money aside on payday, before anything else. The order is in what to do on payday.
- Keep it separate from everyday money.
- Send part of every raise to the goal. If pay rises by 300 and spending by 150, the million arrives sooner and life still gets better.
- Send windfalls — bonuses, tax refunds — in full or half to the goal. What to do with a year-end bonus.
If nothing is possible right now
Start small: five percent of income. The habit matters more than the amount — someone who saved five percent for six months moves to ten without drama. How to save money when it feels like there is nothing left. If you have expensive debt, it comes first: credit card interest is almost always higher than what savings earn. Emergency fund or debt.
What it looks like in the app
In Caudal create a goal called "A million" with the amount and the date: the app works out how much to contribute each month and how many months are left, and updates it after every contribution. The goal's money sits in its own account, counts in your net worth and stays out of the "how many days your money lasts" forecast, so it does not get spent by accident.
Common questions
- How much do I need to save a month to have a million in 20 years?
- Without any return, 4 167 a month. At an illustrative seven percent a year, about 1 920 a month, because more than half of the final amount comes from compound interest.
- Can I save a million on an average income?
- Over a long enough period, often yes. Thirty years at a seven percent return takes about 820 a month. The key is starting early and not stopping, and real returns are never guaranteed.
- How can I save a million faster?
- By raising the monthly amount: sending part of every raise, bonuses and windfalls to the goal, keeping spending growth below income growth, and holding savings where they earn a return.
Try it on your own money
Caudal is an expense tracker in Spanish, English and Russian. Several currencies, goals, debts, a shared household budget. Recording an expense takes three seconds.
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