How long would it take to turn $10,000 into $1 million with ASX shares?

Here are the calculations for becoming a millionaire ASX share investor.

| More on:
A couple are happy sitting on their yacht.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Many investors dream of turning a modest sum into life-changing wealth through the share market. But how long would it actually take to turn a $10,000 investment into $1 million with ASX shares?

The answer depends on several factors, but if we assume that the Australian share market delivers an average total return of 10% per annum, in line with historical trends but not guaranteed, it would take just over 48 years for a single $10,000 investment to grow to $1 million.

This is thanks to the power of compounding, where your returns generate further returns over time, creating exponential growth.

While 48 years might seem like a long time, there are ways to shorten the journey to one million.

Outperforming the market

One way to reach $1 million faster is by outperforming the market. While the ASX has historically returned around 10% per year, some investors and fund managers have been able to achieve higher returns.

For example, if you managed to achieve an average annual return of 15%, your $10,000 would grow to $1 million in 33 years. This is 15 years sooner than the market average.

However, outperforming the market is easier said than done. Even the best professional investors struggle to consistently beat the market.

But it's worth a shot, right? Especially when legendary investor Warren Buffett has demonstrated that it's possible.

Buffett's long-term success has been built on buying high-quality companies at reasonable valuations and holding them for the long term.

For investors looking to outperform, following Buffett's principles—such as investing in companies with strong competitive advantages, solid financials, and capable management—could increase their chances of achieving above-average returns. Of course, there are no guarantees, and higher returns often come with higher risks.

ASX shares like Goodman Group (ASX: GMG) and ResMed Inc. (ASX: RMD) could be the type of companies for investors to look at.

Boosting returns with regular investments

Another way to reach $1 million faster is by making additional investments over time rather than relying solely on the power of compounding.

For example, let's say you start with a $10,000 investment and then contribute $500 per month to your ASX share portfolio. Assuming a 10% annual return, you would reach $1 million in just 28 years. This is 20 years earlier than relying on compounding alone.

This approach takes advantage of dollar-cost averaging, where you invest consistently regardless of short-term market fluctuations. It also allows you to steadily increase your investment base without impacting your disposable income too much.

Foolish takeaway

Reaching $1 million through ASX shares is achievable with time, patience, and discipline.

A one-off $10,000 investment would take 48 years to hit seven figures at a 10% return, but outperforming the market or adding regular contributions could speed up the process significantly.

While there's no guaranteed path to wealth, investing in high-quality companies, maintaining a long-term mindset, and staying consistent with contributions could help you get there faster. The key is to start early, stay invested, and let compounding do the heavy lifting over time.

Should you invest $1,000 in Goodman Group right now?

Before you buy Goodman Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Goodman Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has positions in Goodman Group and ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

A young couple hug each other and smile at the camera standing in front of their brand new luxury car
How to invest

How to turn $100 a week into $500,000 with ASX shares

You don't need to invest large sums to become rich in the share market.

Read more »

Warren Buffett
How to invest

Warren Buffett's favourite holding period is forever, but there's a catch

Buffett is clear about what he wants.

Read more »

$100 Australian notes on top of each other.
How to invest

How to turn a $50,000 ASX share portfolio into a passive income machine

Here's how you could make the share market your own personal ATM.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
How to invest

How cash can make or break an investor's track record

Buffett has mastered the art of holding cash.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
How to invest

Why buy and hold investing with ASX shares could be your smartest move yet

Wealth building takes time but sure could be worth it.

Read more »

Happy young couple saving money in piggy bank.
How to invest

How to earn $12,000 of passive income from ASX shares each year

Want your own personal ATM? Here's how you can get paid by the share market.

Read more »

Happy young man and woman throwing dividend cash into air in front of orange background.
How to invest

The 2025 stock market selloff could be a once-in-a-decade opportunity to build wealth

Now could be a great time to grow your wealth in the share market.

Read more »

Business people discussing project on digital tablet.
How to invest

Is now a good time to start buying ASX shares?

Let's see if recent market volatility has created a buying opportunity.

Read more »