Methodology 📐

First Million Calculator

Our calculator uses a realistic compound interest model adjusted for real-world economic factors, rather than a simple flat rate. The model operates on the following default assumptions:

• Nominal Return (7%): Based on historical long-term averages of the S&P 500 index.
• Inflation (3%): We factor in a 3% annual inflation rate to calculate your real return, ensuring your projected $1,000,000 retains its purchasing power in today's dollars.
• Contribution Growth (3%): We assume your monthly investments will increase by 3% annually, mirroring average career salary growth.
• Compounding Frequency: Returns are compounded monthly.

Net Worth Percentile Checker

The percentile classifications are derived directly from the most recent Survey of Consumer Finances (SCF), conducted triennially by the Federal Reserve Board.

We segment the data into specific age brackets to provide an accurate, peer-to-peer comparison rather than an aggregate national average, highlighting the median, top 10%, top 5%, and top 1% thresholds.

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