Calculate your potential passive income from multiple streams
Current investments or savings
Stock market avg: 7-10%, Dividends: 3-5%, Real estate: 6-12%
Additional monthly investment
Time horizon for growth
Projected portfolio value
If you withdraw at the same rate
What you actually invested
Money earned from compound interest
This free passive income calculator helps you project future wealth and estimate the monthly income your investments could generate. See the power of compound interest over time.
| Source | Typical Yield | Upfront Effort | Ongoing Effort |
|---|---|---|---|
| Dividend Stocks | 3-5% | Low | Minimal |
| Rental Property | 6-12% | High | Medium |
| Digital Products | Unlimited | High | Low |
| Affiliate Marketing | Variable | High | Medium |
| High-Yield Savings | 4-5% | None | None |
Passive income is money earned with minimal ongoing effort after initial setup. Examples include dividends from stocks, rental income, royalties from books or courses, and affiliate marketing revenue. It is not truly "passive" but requires less daily work than a job.
It depends on the yield. At 4% annual return (typical dividend stocks), you need $300,000 invested. At 8% (rental properties), you need $150,000. Digital products (courses, ebooks) can generate $1,000/month with a one-time investment of time, not money.
Best options: Digital products (ebooks, printables, courses), affiliate marketing (blog or social media), dividend investing (start small with apps like Robinhood), rental income (Airbnb a spare room), and licensing creative work (stock photos, music).
Rarely. Most passive income requires significant upfront work (creating a course, writing a book, building an audience) and ongoing maintenance (customer support, updates, marketing). A better term is "scalable income" since it decouples time from earnings.
Create digital products (ebooks, templates, printables) using free tools. Start a blog or YouTube channel and monetize with ads and affiliates. Build an email list and sell your expertise. All require time investment, not money.
Start with dividend investing (even $50/month adds up), high-yield savings accounts (guaranteed 4-5%), or creating simple digital products (Canva templates, printable planners). Avoid complex real estate or business investments until you have experience.
Dividend investing: 5-10 years to see significant returns. Digital products: 6-12 months to build and market. Rental income: 1-3 years for down payment savings. Most people overestimate short-term results and underestimate long-term potential.
Yes. Dividends are taxed at 0-20% depending on income. Rental income is taxed as ordinary income but allows deductions. Digital product sales are taxed as self-employment income (15.3% + income tax). Always set aside 25-30% for taxes.