Calculate monthly passive income from dividends, bonds and REITs. Find how much to invest for any income goal. Free investment income calculator — Calculator4U
Calculate monthly income from your investment portfolio.
An investment income calculator shows exactly how much monthly passive income your portfolio generates — and how much you need invested to hit any income target, whether that is $1,000, $3,000, or $10,000 per month. According to Vanguard's 2025 retirement income research, the average US retiree needs to replace 70–85% of pre-retirement income to maintain their standard of living. For someone earning $60,000 per year, that means generating $42,000–$51,000 annually from their portfolio, Social Security, and pensions combined. At a sustainable 4% portfolio yield — the benchmark backed by the Trinity Study's 30-year retirement research — you need $1,050,000 to $1,275,000 in investable assets to cover that gap above Social Security.
The formula is simple: Annual Income = Portfolio Value × Annual Yield. Monthly Income = Annual Income ÷ 12. Required Portfolio = (Monthly Goal × 12) ÷ Yield. A $500,000 portfolio at 4% blended yield from dividend stocks, Treasury bonds and REITs generates $20,000 per year — $1,667 per month. Yields vary significantly by asset class: high-yield savings accounts and Treasury bonds currently yield 4–5% in 2026, dividend stocks yield 2–4%, and REITs yield 4–8%. Qualified dividends from US stocks held over 60 days are taxed at the lower 0%, 15%, or 20% capital gains rate — a significant tax advantage over bond interest, which is taxed as ordinary income at rates up to 37%.
Use the free Calculator4U investment income calculator above to enter your portfolio value and blended yield — and instantly see your annual income, monthly passive income, and the exact portfolio size required to reach any monthly income goal from $500 to $10,000 per month.
Required Portfolio = (Monthly Income Goal × 12) ÷ Annual Yield. For $1,000 per month ($12,000 per year): at 3% yield you need $400,000, at 4% yield you need $300,000, at 5% yield you need $240,000, at 6% yield you need $200,000. For $2,000 per month: at 4% yield you need $600,000, at 5% yield you need $480,000. For $3,000 per month: at 4% yield you need $900,000, at 5% yield you need $720,000. For $5,000 per month ($60,000/year): at 4% yield you need $1,500,000. The 4% yield target is achievable with a balanced US portfolio of dividend stocks (yielding 2–4%), REITs (4–8%), and Treasury bonds (4–5%). Higher yields above 6% typically involve elevated risk of dividend cuts or capital erosion.
For US retirement income planning, 4–5% is the widely accepted sustainable yield benchmark. This is supported by the Trinity Study (Bengen, 1994, updated 2020), which found that a 4% annual withdrawal rate from a balanced stock and bond portfolio survives a 30-year retirement in over 95% of historical US market scenarios. At 4% yield: a $500,000 portfolio generates $20,000 per year ($1,667/month), a $750,000 portfolio generates $30,000 per year ($2,500/month), a $1,000,000 portfolio generates $40,000 per year ($3,333/month). Yields above 6% — common in high-yield bonds and some REITs — often come with elevated risk of principal loss or dividend cuts that erode your income base over time. For a 20–30 year retirement, prioritise sustainable yield over maximum yield.
Annual Investment Income = Portfolio Value × Annual Yield Percentage. Monthly Income = Annual Income ÷ 12. For a mixed portfolio, calculate your blended yield as: (Asset 1 Value × Yield 1) + (Asset 2 Value × Yield 2) + (Asset 3 Value × Yield 3) ÷ Total Portfolio Value. Example: $200,000 in dividend stocks at 3% + $200,000 in Treasury bonds at 4.5% + $100,000 in REITs at 6% = $6,000 + $9,000 + $6,000 = $21,000 annual income ÷ $500,000 = 4.2% blended yield, generating $1,750 per month. Current 2026 yields by US asset class: high-yield savings 4–5%, Treasury bonds 4–5%, dividend stocks 2–4%, REITs 4–8%, corporate bonds 5–7%, CDs 4–5%.
US investment income is taxed differently depending on its source. Qualified dividends — from US stocks held more than 60 days — are taxed at the preferential capital gains rate of 0%, 15%, or 20% depending on your taxable income. In 2026, the 0% rate applies to single filers earning under $47,025 and married filers under $94,050 — meaning many retirees pay zero federal tax on qualified dividends. Ordinary dividends, bond interest, CD interest, and savings account interest are taxed as regular income at your marginal rate (10%–37%). REIT dividends are generally taxed as ordinary income but qualify for the 20% pass-through deduction under Section 199A, reducing the effective rate. Tax-advantaged accounts (Roth IRA, traditional IRA, 401k) shelter investment income from tax until withdrawal or permanently in the case of Roth accounts.
The amount needed depends on your annual expenses, Social Security benefit, and any pension income. The general rule: your portfolio should generate enough to cover your annual expenses minus guaranteed income sources. Example: $60,000 annual expenses minus $18,000 Social Security = $42,000 needed from portfolio. At 4% yield, that requires $1,050,000 in investable assets. Fidelity's 2025 retirement research benchmarks suggest saving 10× your final salary by retirement age. The median US household retirement savings at age 65 is approximately $185,000 (Federal Reserve Survey of Consumer Finances 2023) — well below what most retirement income calculators recommend. Supplementing portfolio income with Social Security optimisation (delaying to age 70 increases benefits by 8% per year) is the single highest-return strategy available to most US retirees.
The highest-yield income investments available to US investors in 2026, ranked by typical yield: (1) High-yield bonds and bond funds — 6–9% yield, but elevated default risk in economic downturns. (2) REITs (Real Estate Investment Trusts) — 4–8% yield, legally required to distribute 90% of taxable income; top US REITs include Realty Income, VICI Properties, and Simon Property Group. (3) High-yield savings accounts and money market funds — 4–5%, FDIC-insured, zero default risk. (4) Treasury bonds and TIPS — 4–5%, backed by the US government. (5) Dividend growth stocks — 2–4% current yield with 5–10% annual dividend growth, providing rising income over time. (6) Covered call ETFs (e.g. JEPI, JEPQ) — 6–9% yield using options strategies, lower capital appreciation. For retirement income, a combination of REITs (25%), dividend stocks (35%), and Treasury bonds (40%) provides a sustainable 4–5% blended yield with diversified risk.
Investment income is cash paid to you regularly while you hold an investment — dividends from stocks, interest from bonds, distributions from REITs, and rental income from property. Capital gains are profits made when you sell an investment for more than you paid. For income-focused investors and retirees, investment income is preferred because it does not require selling assets — your principal stays intact and continues generating income. Capital gains require selling, which reduces your income-generating base. Tax treatment differs significantly: qualified dividends are taxed at 0–20% (same as long-term capital gains), while short-term capital gains are taxed as ordinary income at up to 37%. A $500,000 portfolio generating 4% dividend income produces $20,000 per year without selling a single share — making it a genuinely passive, sustainable income strategy for US retirement planning.