Should I include my spouse’s income?

Stanley’s original framing looked at household figures. You can use combined income and combined net worth for a household benchmark.

Does this account for regional cost of living?

No. It’s a broad rule of thumb. High-cost areas might require more savings to feel secure even if you meet the benchmark.

Is this a retirement readiness test?

Not directly. It’s a savings behavior benchmark, not a full retirement needs analysis. Combine it with detailed planning for actual retirement readiness.

finance calculator

Stanley Wealth Equation

Calculate expected wealth using Stanley’s Millionaire Next Door formula (age × income ÷ 10) to benchmark your net worth.

Results

Expected wealth (age × income ÷ 10): $480,000

How to use this calculator

Enter your age and annual income.
We compute the expected wealth per the Stanley equation.
Compare to your actual net worth to gauge if you’re a prodigious accumulator (PAW) or under accumulator (UAW) in that framework.
Optionally adjust income for multi-earner households or career stage when interpreting results.

Inputs explained

Age: Your current age; the formula multiples age by income to set an expected wealth benchmark.
Income: Use typical annual income before taxes; the formula is a rough benchmark, not a precise requirement.

How it works

We apply the simple Stanley wealth equation: age × income ÷ 10.

Use it as a quick rule of thumb to see whether you’re ahead or behind the benchmark.

Formula

Stanley expected wealth = age × annual income ÷ 10. Actual PAW/UAW categories also consider whether your net worth is at least 2× or less than 0.5× that benchmark.

When to use it

Benchmarking net worth relative to age and income using Stanley’s rule of thumb.
Educating on PAW/UAW distinctions.
Starting a conversation about lifestyle vs savings behavior and how they impact long-term wealth.
Comparing your progress at different ages against a consistent age × income benchmark.

Tips & cautions

Higher-than-expected wealth (actual > expected) aligns with PAW status in Stanley’s framework.
This is a rough guide; complement with more detailed planning.
High income with low net worth can signal lifestyle inflation; use the equation to spotlight that gap.
Adjust for major career changes—early years often lag; late-career incomes may temporarily spike the benchmark.
Very simplified; does not adjust for household size, geography, or career trajectory.
Assumes a relatively long stable earning career; early-career and late-career situations can skew results.
Does not account for pensions, equity comp, or business interests that may be hard to value.

Worked examples

Age 40, $120k income

Expected wealth = 40 × 120,000 ÷ 10 = $480,000.
If your net worth is $800,000, you’re ahead of the benchmark (PAW-like).

Age 50, $150k income

Expected wealth = 50 × 150,000 ÷ 10 = $750,000.
A $400,000 net worth would be below the benchmark (UAW side in this framework).

Early-career nuance

Age 30, $200k income from a recent promotion.
Expected wealth = 30 × 200,000 ÷ 10 = $600,000—may be high if high income is recent; interpret in context.

Deep dive

Calculate expected wealth using Stanley’s age × income ÷ 10 formula to benchmark your net worth.

Enter age and income to see how your wealth stacks up to the Millionaire Next Door rule of thumb.

Use the Stanley wealth equation as a quick PAW/UAW check before building a full financial plan.

Compare your net worth to a simple age-and-income-based target to gauge savings behavior.

FAQs

Should I include my spouse’s income?: Stanley’s original framing looked at household figures. You can use combined income and combined net worth for a household benchmark.
Does this account for regional cost of living?: No. It’s a broad rule of thumb. High-cost areas might require more savings to feel secure even if you meet the benchmark.
Is this a retirement readiness test?: Not directly. It’s a savings behavior benchmark, not a full retirement needs analysis. Combine it with detailed planning for actual retirement readiness.

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Wealth Calculator (Millionaire Next Door)

Benchmark your net worth using the classic Millionaire Next Door expected wealth formula (age × income ÷ 10) and see your gap.

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Wealth Percentile Score

Estimate a rough wealth percentile score by age band using simplified median and 90th-percentile net worth benchmarks.

Stanley’s wealth equation is a simple rule of thumb from The Millionaire Next Door, not a precise requirement or guarantee of security. It ignores household size, cost of living, pensions, equity, and tax factors. Use it for rough benchmarking only and confirm your plan with a comprehensive financial analysis.