As we wrap up 2025, a fresh analysis from Investopedia has crunched the numbers on what it takes to achieve the classic "American Dream" — and the total comes to a jaw-dropping **$5,043,323** over a lifetime. That's for eight key milestones many of us associate with success and comfort.
The study breaks it down component by component, factoring in everything from mortgages to college tuition. Most costs have risen since last year, thanks to persistent inflation in housing, cars, and education.
Here's the full breakdown:
1. A Comfortable Retirement – $1.6 million
The biggest chunk: funding 20 years of retirement based on average annual spending.
2. Owning a Home – $957,594
This covers buying a median-priced home (around $415,000), plus 30 years of mortgage interest, insurance, and taxes. Up from $930,000 in 2024.
3. New Cars Every Decade – $900,346
For a two-car household, replacing vehicles every 10 years from age 22 to 75. One of the biggest jumps from last year.
4. Raising Two Children + College – $876,092
Raising kids to age 18 costs about $646,000, with four years of in-state public college for each pushing it higher.
5. Health Care – $414,208
Lifetime costs from age 22 to 85 (newly added this year).
6. Annual Vacations – $180,621
One modest trip per year.
7. Pets – $39,381
One dog and one cat over a lifetime.
8. A Wedding – $38,200
The only category that got slightly cheaper.
The reality check? The average American with a bachelor's degree earns about **$2.8 million** over their career — far short of the $5 million needed for this full package.
A survey of over 1,200 adults showed most still tie the Dream to retiring comfortably (86%), quality health care (86%), and homeownership (85%). Fewer see pets (66%) or big weddings (55%) as essential.
Experts have mixed takes. Investopedia's Caleb Silver notes the rising prices across the board and hopes the numbers push people to define *their own* dream and plan for it realistically.
Meanwhile, economist Michael Strain argues we shouldn't equate the Dream with a top-10% lifestyle: "It's really about upward mobility — are you and your kids doing better over time?"