Spend Less - Become a Millionaire Calculator

One way to to accumulate lots of money is to consistently spend less and then invest the amount not spent for the long term.

For example, if you bought a residence with a $1,500 per month mortgage instead of a $2,000 per month mortgage, you would save $500 each month ($6,000 per year) on the mortgage payments. You could then invest that amount for the next thirty years. Assume you bought high-quality dividend-paying stocks, reinvested all dividends and held the stocks for the thirty year life of the mortgage. Given that you invested the $6,000 at the end of each year and the stock portfolio returned six percent each annually, you would have $502,810 at the end of thirty years.

If you continued to hold the stocks for twenty more years and they grew six percent each year, you would have $1,612,580.

Buying a little less of a house means that you could accumulate a significant pile of money for your retirement or other uses.

The calculator operates in two stages. The first stage computes the cumulative value of the annual investment made for a specified number of years. The second stage annually compounds the accumulated value of the last year of the investment stage. You specify the number of years in this stage. Both stages use the same annual rate of return.

Spend Less - Become a Millionaire Calulator
Reduced Annual Spending Amount ($):
Annual Rate of Return (%):
Number Years of Reduced Spending:
Number Years After Reduced Spending:


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