Income

Passive Income Calculator

Estimate passive income from investments based on yield and principal.

Calculator

$
%

Annual income

$8,000

Monthly income

$666.67

Weekly income

$153.85

Daily income

$21.92

What is passive income?

Passive income is money earned with minimal ongoing effort, often from investments. This calculator estimates annual and monthly income from a portfolio at a given yield.

Example

A $200,000 portfolio at a 4% yield generates $8,000/year or $667/month in passive income.

Money-saving tips

  • Diversify income sources: dividends, interest, rental income, royalties.
  • Reinvest passive income until you need it for living expenses.
  • Tax-advantaged accounts reduce the tax bite on investment income.

Common mistakes

  • Chasing high yields that put principal at risk.

Financial definitions

Yield
Annual income from an investment divided by its price.

Frequently asked questions

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