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How Much Must
be Invested Today to Have $1 Million in the Future?
#
of Years & Amount That Must be Invested Today
% return
5 yrs
10 yrs
15 yrs
20 yrs
30 yrs
40 yrs
50 yrs
60 yrs
2.5%
883,854
781,198
690,466
610,271
476,743
372,431
290,942
227,284
5.0%
783,526
613,913
481,017
376,889
231,377
142,046
87,204
53,536
7.5%
696,559
485,194
337,966
235,413
114,221
55,419
26,889
13,046
10.0%
620,921
385,543
239,392
148,644
57,309
22,095
8,519
3,284
12.5%
554,929
307,946
170,888
94,831
29,203
8,993
2,769
853
15.0%
497,177
247,185
122,894
61,100
15,103
3,733
923
228
As you can see, if you could get an average return of 10% per year, you
could deposit $8,519 today (yes, just one deposit) and have it grow to $1 million in 50 years. This is the
magic of compounding - earning a return from your previous returns. You
can also see that getting a 10% return, which is double a 5% return, results
in a lot more than double the investment when invested for decades.
All amounts are compounded annually at the rate of returns shown above, and
all amounts are pre-tax.
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