Here's How Long It Actually Takes to Build a $1 Million Portfolio, According to History

Here's How Long It Actually Takes to Build a $1 Million Portfolio, According to History

Stefon Walters, The Motley Fool

Sun, August 30, 2026 at 1:41 PM GMT+3 4 min read

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When it comes to finances, the million-dollar mark has long been one of the more coveted checkpoints. Something about $1 million feels freeing and offers the financial flexibility people can carry into retirement.

Although hitting the million-dollar mark may seem far-fetched, it's likely much more doable than most people think. Let's take a deeper dive into how long it could actually take someone to reach the seven-figure mark.

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Lean on the S&P 500

Countless investments could take investors to the promised land, but one I typically recommend investors lean on is the S&P 500 (SNPINDEX: ^GSPC). Tracking the largest 500 U.S. companies on the market, the S&P 500 has become the go-to way to take advantage of a growing U.S. economy.

There are a few S&P 500 ETFs to choose from, but my go-to is the Vanguard S&P 500 ETF (NYSEMKT: VOO) because of its low 0.03% fee, or $0.30 per $1,000 invested. It's my largest holding and will likely be for quite some time.

How long will it take to reach $1 million?

Since its inception, the S&P 500 has averaged just over 8% annual total returns, so that's the figure we'll use for our example. Below is how many years it would take you to reach $1 million based on different monthly investment amounts:

Table and calculations by author. Years are the whole year after reaching $1 million.

If we assume the S&P 500 averages 10% annual returns over the long haul (it has averaged over 13% in the past decade), here's how many years it would take to hit the million-dollar mark at those same monthly investments:

Table and calculations by author. Years are the whole year after reaching $1 million.

Unsurprisingly, the amount of time it takes to hit $1 million depends on how much you invest, but one thing that works in all investors' favor is compound earnings. Compound earnings happen when the money you invest begins to earn money on itself, and it's arguably the single biggest reason people can generate wealth in the stock market.

Reaching $1 million by strictly saving is a tough ask. Even if you can save $40,000 annually, it'd take you 25 years. If you can save $25,000 annually, it'd take 40 years. With compound earnings, that time is cut significantly. The one thing investors should focus on is staying consistent and trusting that the market will reward them over the long term.

Past results don't guarantee future performance, but that has been one of the surest ways to reach the million-dollar mark.

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Stefon Walters has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

Here's How Long It Actually Takes to Build a $1 Million Portfolio, According to History was originally published by The Motley Fool