Passive Income Calculator

Use our free passive income calculator to estimate how much ongoing income your investments can generate. See monthly and annual passive income, plus the safe withdrawal amount based on the 4% rule.

Financial

Currency

Initial Investment

Monthly Contribution

Expected Annual Return (%)

Time Horizon (years)

years

Formula

Build and visualize your passive income streams. This calculator projects how your portfolio grows with contributions and compound returns, then shows how much passive income your portfolio can generate each month.

Monthly Passive Income = Portfolio Value × (Annual Return / 12)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your initial investment and any monthly contributions.
2Set the expected annual return rate.
3Choose your investment time horizon.
4See your total portfolio value and how much monthly passive income it generates.
5The 4% safe withdrawal amount is also shown for retirement planning.

Examples

$100,000 investment, $500/month, 7% return, 10 year horizon

1.Portfolio after 10 years ˜ $285k
2.Monthly passive income ˜ $285k × 7%/12 ˜ $1,662
3.4% safe withdrawal ˜ $11,400/year

Result: $1,662

Frequently Asked Questions

Passive income is earnings from investments, rental properties, dividends, or businesses that require little ongoing effort. Investment returns are the most common form of passive income.

This depends on your portfolio size and return rate. As a rule of thumb, a $1M portfolio at 7% generates about $70,000/year or $5,833/month in passive income.

The 4% rule suggests you can withdraw 4% of your portfolio annually without depleting it for 30 years. For passive income, your portfolio needs to be 25× your desired annual income.

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Building Passive Income

CalculateMe Team

Last updated: 2026-07-16

Frequently Asked Questions

Passive income is earnings from investments, rental properties, dividends, or businesses that require little ongoing effort. Investment returns are the most common form of passive income.

This depends on your portfolio size and return rate. As a rule of thumb, a $1M portfolio at 7% generates about $70,000/year or $5,833/month in passive income.

The 4% rule suggests you can withdraw 4% of your portfolio annually without depleting it for 30 years. For passive income, your portfolio needs to be 25× your desired annual income.

Passive Income Calculator

Formula

How It Works

Examples

$100,000 investment, $500/month, 7% return, 10 year horizon

Frequently Asked Questions

What is considered passive income?

How much passive income can I generate?

What is the 4% rule for passive income?

Related Calculators

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Passive Income Calculator

Formula

How It Works

Examples

$100,000 investment, $500/month, 7% return, 10 year horizon

Frequently Asked Questions

What is considered passive income?

How much passive income can I generate?

What is the 4% rule for passive income?

Related Calculators

Related Articles