Investment Income Calculator

Calculate how much passive income your investment portfolio can generate. Plan for retirement income.

Calculate monthly income from your investment portfolio.

About This Calculator

Estimate your passive income stream with the Investment Income Calculator. Whether you're planning for retirement or building wealth, understanding your income potential is essential.

Investment income allows you to earn money while you sleep. Dividend stocks, bonds, and REITs can provide reliable income streams, and understanding your portfolio's yield helps plan for financial independence and retirement.

Investment Income Formula

Annual Income = Portfolio Value × Annual Yield
Monthly Income = Annual Income ÷ 12

Yields vary by investment type—diversification provides stability.

Practical Example

$500,000 portfolio at 4% yield: Annual income = $20,000. Monthly income = $1,667. Combined with Social Security and pensions, this can fund comfortable retirement.

Typical Yields by Asset Class

Asset ClassTypical YieldRisk Level
High-Yield Savings4-5%Very Low
Treasury Bonds4-5%Low
Dividend Stocks2-4%Moderate
REITs4-8%Moderate-High

Pro Tips

  • Reinvest dividends during accumulation phase
  • Qualified dividends are taxed at lower capital gains rates
  • Diversify across asset classes for stable income
  • Consider dividend growth stocks for rising income over time

Related tools: Investment Calculator for portfolio building, Retirement Calculator for planning, and SWP Calculator for withdrawal strategies.

Frequently Asked Questions

How is investment income calculated?

Annual Income = Portfolio Value × Dividend/Interest Yield. $500K at 4% yield = $20,000/year or $1,667/month. Diversify across asset classes for reliable income.

What is a good yield for retirement income?

4-5% is sustainable long-term. Higher yields (6%+) often indicate higher risk. Balance yield with capital preservation—you need income for 20-30+ years in retirement.

How much do I need invested for $1000 monthly income?

At 4% yield: $1,000/month × 12 ÷ 0.04 = $300,000 needed. At 5% yield: $240,000. At 3% yield: $400,000. Higher yield = less principal required.