Wealth Calculator (Millionaire Next Door)

How to use this calculator

1. Enter your current age and typical annual income before taxes (use an average if your income varies).
2. Enter your current net worth (assets minus debts).
3. We calculate your expected wealth using age × income ÷ 10.
4. We compute your wealth gap and assign an ahead/behind status based on whether your net worth is above or below the benchmark.
5. Use the results to reflect on your savings habits and whether you want to adjust your plan.

Inputs explained

Age

Your current age in years. The expected wealth benchmark scales with age, under the assumption that older savers have had more time to accumulate.

Annual income

Your typical gross annual income before taxes. If your income is volatile, consider using a multi-year average to get a stable benchmark.

Net worth

Your total assets minus total liabilities, including home equity and investments. Be consistent in what you include when tracking over time.

When to use it

• Getting a quick wealth benchmark to see if your saving and investing habits align with Millionaire Next Door-style expectations.
• Checking progress toward PAW (prodigious accumulator of wealth) status versus UAW (under accumulator of wealth) status.
• Comparing your wealth benchmark across years by updating age, income, and net worth and watching how the gap changes.
• Starting a conversation about lifestyle choices, spending, and savings behavior with a partner or financial planner.
• Using the expected wealth line as a motivation target while acknowledging its limitations.

Tips & cautions

• Treat this equation as a conversation starter, not a pass/fail grade—many healthy financial situations will be above or below this line.
• Use an average income if your pay varies significantly from year to year (for example, commission or bonus-heavy roles).
• If you live in a very high or very low cost-of-living area, consider adjusting your interpretation; the original formula didn’t account for geography.
• Track your gap over time—closing a negative gap or maintaining a positive one can be more important than any single-year snapshot.
• Combine this with other tools (like savings multiples or wealth percentiles) for a more rounded view of financial health.
• Simplified benchmark that ignores cost of living, household size, career path, and wealth composition.
• Does not distinguish between liquid and illiquid assets or good versus bad debt.
• Assumes that age and income alone are sufficient to define a wealth target, which may not hold for early retirees or atypical careers.
• Not adjusted for inflation or changing economic conditions; the original guideline was developed decades ago.

Deep dive

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