Wealth Benchmark Calculator
Calculate your Wealth Benchmark
Is your business worth your time?
Businesses can help founders generate incredible levels of freedom and wealth, but the outcome isn't guaranteed. This wealth calculator is designed to help you assess your situation and make wiser decisions about how you use your limited time. Questions like:
- Assuming I don't have a massive exit, how will my business income impact my net worth?
- Am I better off selling my business and taking a job?
- How much do I need to grow my business to achieve my wealth goals?
- Am I paying myself enough?
The Wealth Benchmark measures your net worth against two factors: your age and income. Assuming your income is adequate for your needs and you have time to catch up, the benchmark provides an achievable goal.
🪙After putting in your net worth, you can tweak your savings rate to adjust your timeline. You can, of course, adjust your rate of return (e.g., a bank rate), but I suggest picking a modest number. Past performance is no guarantee of future returns. Also, keep in mind that this calculation uses many assumptions, including a smooth annual return from your investments.
🪙As a bonus, we also provide the benchmark for "prodigious accumulators of wealth," which is twice the standard benchmark. Both benchmarks were proposed in The Millionaire Next Door by Thomas J. Stanley and William D. Danko, 1996.
🪙Disclaimer: this calculator is for educational purposes only, and is not personalized financial advice. Use at your own risk.