Portfolio Income Calculator

500,000 portfolio at 3.5% blended income yield = 17,500/year income. Divided monthly: 1,458. Living off income rather than selling holdings is one approach some retirees use to limit exposure to sequence-of-returns risk.

A worked example

Assume a portfolio value of 500,000 and a blended yield of 3.5%. The calculator estimates annual income of 17,500, or approximately 1,458 per month. If the portfolio value rises to 750,000 at the same yield, annual income grows to 26,250. Conversely, if yield falls to 2.5% on the original 500,000 portfolio, income drops to 12,500 annually. This illustrates how both portfolio size and yield rate drive the output.

At a 500,000 portfolio and 3.5% blended yield, the calculator shows 17,500 a year. Adjust any input and the result updates as you type — no submit button, no reload, so you can see how sensitive the output is to each assumption.

What moves the number most

The result responds to Portfolio Value and Blended Yield. Income is simply one multiplied by the other, so a change in either moves the annual figure by the same proportion. Adjusting one at a time shows how sensitive the income is to each.

The formula behind this

Portfolio × yield percentage = annual income. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Using this well

Common scenarios where this metric matters

• Comparing income from different portfolio compositions (equities vs. bonds vs. mixed)
• Estimating monthly cash flow available without selling holdings
• Testing how much income a target portfolio value might generate
• Evaluating whether current portfolio income meets a stated annual spending goal

What this doesn't capture

This is a simplified model that holds its assumptions constant. Real outcomes vary with market conditions, costs, taxes, and timing, so the figure is best read as one scenario rather than a forecast.

The calculator also does not account for:

• Changes in yield over time (e.g., interest rate shifts, dividend cuts)
• Reinvestment of income or capital appreciation
• Inflation's effect on purchasing power
• Tax treatment of different income sources

Educational illustration only

This calculator models income on static inputs and serves as an educational tool. Results are estimates for comparison purposes and do not predict future outcomes. Actual portfolio income will vary based on market conditions, individual holdings, and personal circumstances.

What to calculate alongside this

One figure by itself is fragile. The fi progress calculator, the dividend income calculator, and the dividend income goal calculator cover adjacent ground — the answer to any one of them changes how you read the output from this tool.