| Per month | 4% rule | Savings 4.2% | Div. ETF 3.7% |
|---|---|---|---|
| $1,000 | $300,000 | $286,000 | $324,000 |
| $2,000 | $600,000 | $571,000 | $649,000 |
| $5,000 | $1,500,000 | $1,429,000 | $1,622,000 |
| $10,000 | $3,000,000 | $2,857,000 | $3,243,000 |
Free Passive Income Calculator — Monthly Goal, Contribution and Time
This passive income calculator answers the question most investors start with: how much do I need to invest for passive income? Enter the monthly income you want, your initial amount, how much you can save each month and the expected rate of return. The calculator compounds your balance month by month and shows the wealth you build and the monthly passive income it pays.
Leave one field blank and it solves for it: the time to reach your goal, the monthly contribution required, the initial amount needed or the return rate that makes your plan work. It works as a monthly passive income calculator — every result is shown per month, the way you actually spend money.
How Much Do I Need to Invest for Passive Income?
The quick formula is monthly income × 12 ÷ annual yield. With the 4% rule, that means 300 times the monthly income you want: $1,000 a month needs about $300,000, and $5,000 a month needs about $1.5 million. The lower the yield, the more you need invested — but savings rates move with interest rates, while stock dividends and the 4% rule are designed to keep up with inflation.
Amount you need invested for each monthly income. Savings = high-yield savings account; Div. ETF = dividend ETF yield. Rates as of October 2026, before taxes. Sources: CNBC Select and NerdWallet (savings and CD rates, Oct 2026), U.S. Treasury (3-month bill), BLS Consumer Expenditure Survey (household spending). Not financial advice.
How Long Does It Take to Reach Your Goal?
Time is the variable that matters most. Investing $1,000 a month at a 10% average annual return (the long-term stock market average), you reach $1 million in about 23 years; at 7% a year (after inflation) it takes about 28 years. And once you get there, see how much $1 million earns per month in savings, CDs, T-bills and dividend ETFs. Use the calculator above to test your own contribution, rate and deadline.
Best Investments for Passive Income in 2026
The most popular passive income sources are dividend ETFs like SCHD, VYM, and JEPI (current yields 3–7%); REITs with monthly distributions; dividend stocks from established companies; and bonds and Treasury securities for stable fixed income. Use the calculator to compare scenarios and find the path that fits your timeline and risk tolerance.
Want ready-made numbers? Browse all passive income simulations — how much $100k to $10 million earns per month, how much to invest for $1,000 to $20,000 a month, and how long it takes to save $1 million.