How long will it take for you to make and keep a million dollars at your current job? This calculator helps determine how long you’ll need to work to hit $1 million in earnings and savings based on your current income, tax bracket, and monthly expenses. Whether you’re earning an annual salary or paid hourly this calculator will make timeline to hit your financial goals.
Disclaimer: This tool is for educational purposes only. Consult a financial advisor to determine your real tax rate and earnings potential.
$1 Million Dollars from Work Calculator
How this calculator works
Here’s how the income and tax determinations are made:
- Annual Salary: Used directly as your gross yearly income.
- Hourly Wage: Converted to annual income using the formula: Annual Income = Hourly Rate × 40 hours × 52 weeks (Example: $20/hour = $20 × 40 × 52 = $41,600 annual income). This tool assumes you work 40 hours a week and are paid for 52 weeks in a year.
2023 Tax Rate Determination The calculator uses official 2023 IRS tax brackets to calculate tax. Keep in mind that tax policy changes each year so consult a tax professional for the latest. These estimates are provided for educational purposes only.
Single Filer Tax Brackets:
- 10%: $0 – $11,000
- 12%: $11,001 – $44,725
- 22%: $44,726 – $95,375
- 24%: $95,376 – $182,100
- 32%: $182,101 – $231,250
- 35%: $231,251 – $578,125
- 37%: $578,126+
Married Filing Jointly Tax Brackets:
- 10%: $0 – $22,000
- 12%: $22,001 – $89,450
- 22%: $89,451 – $190,750
- 24%: $190,751 – $364,200
- 32%: $364,201 – $462,500
- 35%: $462,501 – $693,750
- 37%: $693,751+
Average Monthly Expenses
Figuring out your average monthly expenses is essential for the accuracy of this report. To get the best results, take the time to write down what you spend money on every month including groceries, utilities, phone, internet, insurance, transportation, rent, and entertainment. The more detailed list of monthly expenses you can account for the more accurate your calculations.
By default, I entered $4,163 in average monthly expenses as the default based on the average monthly expenses by household size provided by Ramsey Solutions. Based on the same article married couples without kids can expect $7,390 in monthly expenses. A family of four can expect to spend $8,450 per month.
How much can you save from your paycheck?
There’s an old saying that goes something like: “It doesn’t matter how much you make. It’s the amount of money you’re able to save that’s important.” I happen to agree with the overall sentiment of this proverb.
Entering the workforce early.
The reality is it’s hard to hold onto money in today’s society. We are taxed a lot and there’s a certain amount of overhead each of needs to cover just to live including food, electricity, transportation rent or a mortgage. What’s even crazier is this calculator only takes into consideration your federal tax. When you consider state income tax and sales tax rates that average 5% – 7%, it’s not easy to reach $1 million dollars in personal savings by way of a bi-weekly paycheck.
What can you do to save a million dollars faster?
If you’re feeling discouraged by the results in this calculator, you’re not alone. I entered the average salary of an employee of $63,795 per year into income field and the calculator estimated a time horizon of 72+ years to save $1 million dollars. This assumes a low monthly overhead of only $3,000 per month.
The results I got with a $63,795 salary with only $3,000 in monthly spend.
But it’s not all doom and gloom! I have some good news for you too. Here are some actionable strategies that can help speed up your journey without having to switch jobs entirely:
Ask for an Annual Raise: Don’t underestimate the power of consistent, small raises. Even a 3% annual raise compounded over time can add up significantly. If you can demonstrate your value, aim higher. A raise not only boosts your income but can increase your 401K contributions or any employer matches, pushing you closer to the million-dollar mark.
Put in Extra Hours or Work Overtime: While working overtime isn’t sustainable for everyone, it can be a great short-term boost to your income. Just a few extra hours each week can translate to thousands of dollars a year. If your workplace offers overtime pay, this can be a strategic way to increase your savings without making drastic changes.
Maximize Your 401K or IRA Contributions: Investing in a tax-deferred plan like a 401K not only reduces your taxable income today, but it also sets you up for significant growth over time. The average stock market appreciation is about 7-8% annually, which can lead to substantial wealth over a long time horizon. Plus, many employers offer a 401K match—free money that accelerates your path to $1 million.
Start a Side Hustle or Small Business: While your day job covers your main expenses, a side hustle can be the difference-maker that propels you toward your financial goals faster. Whether it’s freelancing, selling products online, or mowing a few lawns on during your weekends, a small monthly side income can shave years off the time it takes to reach $1 million.
A Little Hope: Hitting $1 million might seem out of reach, but you have more options than you think. By making small adjustments, staying consistent, and leveraging these strategies, you’ll be surprised how much faster you can get there. It’s all about stacking incremental gains and making your money work for you.
Related tools:
$1 Million Dollar Earnings / Revenue Calculator for Founders: Make a plan for generating $1 million or more in business revenue.
$100K Earnings / Revenue Goals Calculator for Founders: Make a plan for generating $100,000 or more in business revenue.
About the Author: Brett Lindenberg
