Wealth Accumulation Time Calculator

How to Use the Calculator

1. Enter your initial investment amount (if any). This is the amount of money you already have saved.
2. Enter your monthly contribution. This is the amount of money you plan to save each month.
3. Enter your expected annual rate of return. This is the percentage return you expect from your investments each year.
4. Enter your financial goal. This is the total amount of money you want to accumulate.
5. Click the "Calculate" button to determine how long it will take to reach your financial goal.

Understanding the Formula

The calculator uses the following formula to determine the time to reach your financial goal:

Time to reach goal = Log((Goal + (Contribution * (1 + Return/12)^n) / Return) / (InitialInvestment + Contribution * (1 + Return/12)^n)) / Log(1 + Return/12)

This formula accounts for both your initial investment and your regular contributions, as well as the compound interest that accrues over time.

Example

For example, if you have an initial investment of $10,000, plan to contribute $500 each month, expect an annual return of 7%, and have a financial goal of $500,000, the calculator will determine how many years and months it will take to reach your goal.

Important Considerations

• The expected rate of return is an estimate and can vary based on market conditions and investment performance.
• The calculator assumes that your contributions are made at the beginning of each month.
• For more accurate results, consider consulting with a financial advisor.