Description

Numbers you need to provide

To get accurate results from your Passive Income Calculator, you’ll enter a few key assumptions:

• Expected portfolio value at the moment you plan to start withdrawing money.

• Average annual rate of return you expect from your investments.

• Withdrawal rate — consider whether the classic 4 % rule or another rate fits your goals.

• Expected inflation rate — research the historical average for your country to model realistic long-term results.

For withdrawing money explore proven methods compared with our free Retirement Withdrawal Strategy Calculator.

How your Calculator works

Once you enter your numbers, the Passive Income Calculator does the work for you. It projects your stock market portfolio value for the next 20 years, showing both monthly and yearly withdrawals. You’ll instantly see how much passive income lands in your account each month and how your portfolio changes over time as you draw from it. A dynamic chart visualizes your portfolio’s growth and drawdown over time. Keep in mind that those withdrawals won’t hit your bank account until any taxes owed are paid.

Inflation-adjusted income

Each year after your first withdrawal, the Passive Income Calculator automatically adjusts your figures for inflation using your personal inflation rate. This keeps your results realistic and helps you understand how purchasing power might evolve throughout your retirement or semi-retirement journey.