What happens if you invest $1,000 a month?
Short answer
Investing $1,000 a month for 30 years at an assumed 7% yearly return grows to about $1,219,971. You put in $360,000; growth adds $859,971. Returns are not guaranteed and can be negative in any year.
The math
Time does most of the work
After 10 years the balance is about $173,085, only $53,085 more than you put in. After 20 years it is $520,927, and by 40 years it is $2,624,813. Growth earns growth, so the later decades add far more than the early ones.
- $1,000 × 360 months$360,000
- Growth at 7% a year+$859,971
- Balance after 30 years=$1,219,971
The numbers
$1,000 a month at 7% a year
| Year | You put in | Growth | Balance |
|---|---|---|---|
| 1 | $12,000 | $393 | $12,393 |
| 5 | $60,000 | $11,593 | $71,593 |
| 10 | $120,000 | $53,085 | $173,085 |
| 15 | $180,000 | $136,962 | $316,962 |
| 20 | $240,000 | $280,927 | $520,927 |
| 25 | $300,000 | $510,072 | $810,072 |
| 30 | $360,000 | $859,971 | $1,219,971 |
| 35 | $420,000 | $1,381,055 | $1,801,055 |
| 40 | $480,000 | $2,144,813 | $2,624,813 |
$1,000 a month for 30 years at different returns
| Annual return | Balance after 30 years | Of which growth |
|---|---|---|
| 4% | $694,049 | $334,049 |
| 5% | $832,259 | $472,259 |
| 6% | $1,004,515 | $644,515 |
| 7% | $1,219,971 | $859,971 |
| 8% | $1,490,359 | $1,130,359 |
| 10% | $2,260,488 | $1,900,488 |
Assumes deposits at the end of each month and a steady 7% yearly return before inflation, fees and taxes. Real returns vary and can be negative.
Where to put it
For retirement, put it in a 401(k) up to any employer match first, then an IRA. A broad, low-cost index fund or target-date fund keeps fees low, and fees come straight out of the growth in this table.
About the 7%
7% a year before inflation is an assumption for planning, not a promise. Stock prices can fall sharply for years at a time. The second table shows how much the result moves with the return, which is why it helps to plan with a lower number too.
Try your own numbers
Questions people ask
How much is $1,000 a month for 40 years?
At an assumed 7% a year it grows to about $2,624,813, from $480,000 of deposits.
Is $1,000 a month enough for retirement?
It depends on when you start and what you'll need. Using the 4% rule of thumb, $1,219,971 could support about $48,799 a year of withdrawals, before taxes and inflation.
What if the market drops?
Monthly investing buys more shares when prices are low. Stopping your deposits during a drop is the most common way to lock in a loss.
Learn the idea
Other amounts
Sources
General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act.
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