Investment Income Calculator for Income and Required Investment Amount

What this calculator is

The Investment Income Calculator shows how much income a portfolio can produce from a given yield and investment amount. You can also reverse the calculation to see how much you need to invest to reach a target income. It is designed for quick planning and clear expectations, not for detailed growth projections.

Inputs and outputs

Choose the calculation you want, then enter the other two values. The results always include both annual income and monthly income, so you can plan by year or by month.

• Yield per year is the expected yearly return expressed as a percentage.
• Investment amount is the total amount invested.
• Income is the annual income you want to earn.

Formulas used

This calculator uses a simple linear relationship between yield and income.

• Annual income = Investment amount × Yield
• Monthly income = Annual income ÷ 12
• Investment amount = Annual income ÷ Yield

Examples

If you invest 1500 at a yield of 4 percent, the annual income is 60 and the monthly income is 5. If your target income is 150 per year at a yield of 4 percent, the required investment amount is 3750.

When to use this calculator

• Estimate dividend or interest income from a portfolio.
• Plan how much to invest for a target income goal.
• Compare income outcomes for different yield assumptions.

Common pitfalls and notes

• This is not a compounding model, so it does not project future growth.
• Taxes, fees, and inflation are not included.
• Yield can change over time, so use a realistic assumption.
• Income is shown before any costs or taxes.