Why a future million is smaller
Inflation slowly raises prices, so each dollar buys a little less every year. At 3% inflation, prices double in about 24 years, which means a million dollars received 24 years from now buys roughly what $500,000 buys today. The calculator divides the amount by (1 + inflation) once for each year to bring it back to today's buying power.
Value in today's money = future amount ÷ (1 + inflation)^years
Running it the other way shows the target you would need to hit in the future to keep the same lifestyle a million buys today. Over 30 years at 3% that is about $2.43 million.
What inflation rate to use
The US Federal Reserve targets 2% inflation over the long run, but actual inflation has often run higher, with the long-term US average closer to 3%. Using 2.5% to 3% is a common middle ground for plans spanning decades. If you want to be cautious, try 3.5%.
You can avoid this conversion entirely by planning in real terms: subtract inflation from your expected return in the other calculators. A 7% return with 3% inflation becomes a 4% real return, and every answer is then in today's money.
Common questions
What will $1 million be worth in 30 years?
At 3% inflation, about $412,000 in today's buying power. At 2% it is about $552,000.
How much will I need in 30 years to equal $1 million today?
About $2.43 million at 3% inflation, or $1.81 million at 2%.
Is $1 million still a lot of money?
It is still a large sum, but its income power depends on withdrawal rates. At 4% a year it supports about $40,000 of yearly spending. See how much income $1 million gives.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.