How Much Interest Does $1 Million Dollars Earn?

57 sec read

how much interest does $1 million dollars earn


If you find yourself with a million dollars in cash to invest, then my friend, you should give me a call 🙂 All jokes aside, 1 million dollars can earn a very good amount of Interest and serve as good passive income. But how much does 1 million dollars earn in interest?

First things first, it’s important to always remember that to it comes to finances, it always depends. It depends where you invest the money, how much of it you invest, and where you invest it.

That said, we can probably come up with some pretty accurate numbers based on some assumptions.

How much interest does $1 million dollars earn per month?

Assuming a 4% interest rate compounded monthly, here is how much $1 million dollars would earn each month for a year.

MonthInterest EarnedTotal Balance
0$0.00
1$3,333.33$1,003,333.33
2$3,344.44$1,006,677.78
3$3,355.59$1,010,033.37
4$3,366.78$1,013,400.15
5$3,378.00$1,016,778.15
6$3,389.26$1,020,167.41
7$3,400.56$1,023,567.97
8$3,411.89$1,026,979.86
9$3,423.27$1,030,403.13
10$3,434.68$1,033,837.80
11$3,446.13$1,037,283.93
12$3,457.61$1,040,741.54
how much interest does $1 million dollars earn

How much interest does $1 million dollars earn per year?

$1 million dollars can earn anywhere from $20,000 to $100,000 a year depending on the interest rate and compounding interest. Here is a table showing how much it can earn accounting for yearly compounding interest.

Interest Rate1 Year5 Years10 Years20 Years35 Years
0.00%$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
2.00%$1,020,000$1,104,080$1,218,994$1,414,778$1,999,889
4.00%$1,040,000$1,216,6521,480,244$2,191,123$3,946,088
6.00%$1,060,000$1,338,225$1,790,847$3,207,135$7,686,086
8.00%$1,080,000$1,469,328$2,158,925$4,660,957$14,785,344
10.00%$1,100,000$1,610,510$2,593,742$6,727,500$28,102,436

How to start saving

Reaching $1 million dollars to invest doesn’t happen overnight, and might not be as impossible as you might think. Just like running a marathon, it always starts with that very first step.

I always say that, in order to grow your wealth, all it starts with is $1! That’s it! The habit of investing, no matter how small, grows into something amazing. Use services like Acorns or Robinhood to get started. Free and easy to use. Don’t put it off longer than you have to. You’ll thank me later 🙂




Digest Your Finances

Leave a Reply

Your email address will not be published.