A billion is bigger than it sounds
Millions and billions sound close, but a billion is a thousand millions. Spending $10,000 every single day, it would take about 274 years to get through $1 billion. At $1,000 a day it would take more than 2,700 years, longer than recorded history in many parts of the world.
And that is without interest. Put a billion dollars in a savings account at 4% and it earns about $110,000 a day, so you could spend $100,000 every day forever and never touch the principal. That is the real reason great fortunes tend to keep growing.
What interest does to a fortune
The interest box changes everything. A billion dollars earning 4% a year makes about $110,000 a day, so spending anything less than that leaves the fortune growing forever. To run it down in 30 years at 4%, you would need to spend about $157,000 a day, and to empty it in 10 years about $332,000 a day.
The same rule applies to ordinary savings, just on a smaller scale. A $1 million retirement fund earning 4% produces about $40,000 a year, and as long as you take less than it earns, the balance holds. That is the idea behind the 4% rule and financial independence. Our guide on how long it takes to spend a billion explores more ways to picture the number.
Common questions
How much would you have to spend daily to run out of a billion in 30 years?
About $157,000 a day if the money earns 4% a year while you spend it.
How long would it take to spend a billion dollars at $1 million a day?
About 1,000 days, or 2.7 years, without interest.
How much interest does a billion dollars earn per day?
About $110,000 a day at 4% a year.
How long is a billion seconds?
About 31.7 years.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.