Savings Income โ Passive Income
Estimate monthly and annual income from a portfolio. Uses withdrawal rate (e.g. 4%) and yield. Principal grows if yield exceeds withdrawal.
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4% rule common Principal can grow Add Social Security Tax varies by account
Ready to run the numbers?
Why: Knowing portfolio income helps plan retirement and spending.
How: Enter principal, annual yield, withdrawal rate, and years of income.
Run the calculator when you are ready.
Savings Income Calculator โ Income From Your Nest Egg
See how much income your savings can generate. 4% rule is a common starting point.
Sample Scenarios โ Click to Load
Savings Details
Income Analysis
Your Savings
Income Generated
Principal Status
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1. Key Takeaways
- โข 4% rule is a common starting point
- โข Yield = withdrawal preserves principal
- โข Diversify income sources
- โข Consider tax implications
- โข Dividends, interest, rental
- โข Principal can grow if yield > withdrawal
2. Did You Know?
4% Rule
Withdraw 4% annually; historically sustainable
Dividends
Stock dividend payments
Interest
Bonds, CDs, HYSA
Rental
Real estate income
Annuities
Guaranteed income products
Net Rate
Yield minus withdrawal = growth
3. How It Works
Annual income = principal ร withdrawal rate. Monthly = annual / 12. Principal remaining = principal ร (1 + net rate)^years where net rate = yield - withdrawal. If yield โฅ withdrawal, principal grows.
Inputs
Principal, annual yield, withdrawal rate, years
Outputs
Monthly/annual income, lifetime income, principal remaining
4. Expert Tips
Match yield to withdrawal
Preserves principal long-term
Diversify sources
Dividends, bonds, rental
Tax efficiency
Roth, municipal bonds
Adjust for inflation
Increase withdrawal over time
5. Comparison Table
| $500K | 4% | $1M 4% |
|---|---|---|
| Annual Income | $20K | $40K |
6. FAQ
Withdraw 4% of portfolio annually; historically sustainable over 30 years.
If yield = withdrawal, principal stays flat. Higher yield = growth.
Add to this for total retirement income.
Roth = tax-free; taxable = ordinary income.
Increase withdrawal or use real return.
7. Quick Stats
4%
Common rule
3%
Conservative
5%
Dividend focus
30
Typical years
8. Sources
9. Disclaimer
โ ๏ธ Warning: Estimates only. Actual returns may vary. Not financial advice.
For educational purposes only โ not financial advice. Consult a qualified advisor before making decisions.
๐ก Money Facts
4% rule: common withdrawal starting point
โ Trinity Study
Principal grows if yield > withdrawal
โ Finance
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