When Will Your Passive Income Start?

Passive Income Timeline Calculator

Use this tool to project how long it will take to achieve your financial independence goal. Input your starting funds, planned contributions, and estimated return rate to see your personalized timeline.

Use 0-30%

Estimated Date of Financial Independence (FI)

Timeline to FI Goal (Max 80 Years)

0 Years 20 Years 40 Years 60 Years 80 Years

Growth Projection Chart

Annual Passive Income Growth Projection

Year Total Balance ($) Monthly Passive Income ($)
Click 'Calculate Timeline' to see results.

This table estimates your **Total Balance** and **Monthly Passive Income** at the end of each year, based on the simulation.

The highlighted row indicates the year you are estimated to reach your target passive income goal (FI target year).

The display is limited to the first 30 years or 5 years after the target is met.

Disclaimer: This tool provides an estimate based on assumptions and compound interest formulas. It does not constitute financial advice. Investment returns are not guaranteed and past performance is not indicative of future results.

Next step: Wondering how much capital you need to reach your monthly passive income target? → Capital Requirement Calculator

Frequently Asked Questions

What is a realistic expected annual return rate for passive income?

A common benchmark is 7-10% for diversified stock market investments (like S&P 500 historically, unadjusted for inflation). Real estate and fixed income can vary widely. It's crucial to be realistic; higher returns usually mean higher risk.

How does inflation affect my passive income goal?

Inflation erodes purchasing power. A $1,000 monthly income goal today might need to be $1,500 in 10 years to maintain the same lifestyle. This calculator uses nominal values, so you might consider setting a higher target or using a real (inflation-adjusted) return rate.

What are the biggest risks to achieving financial independence through passive income?

Market volatility is the primary risk, as investment returns are never guaranteed. Other risks include unforeseen personal expenses, high inflation, and not sticking to your planned monthly contributions. Diversification is key to mitigating risk.

What is 'Passive Income' in this calculator's context?

In this model, passive income is defined as the estimated monthly earnings generated by your current total balance, calculated as: (Annual Return Rate / 12) * Total Balance. It represents a theoretical withdrawal amount that your principal generates without depleting the balance (assuming the return rate is maintained).

Should I choose to 'Reinvest all gains'?

For true compounding (accelerated growth where earnings generate more earnings), you must keep the 'Reinvest all gains' option enabled. Disabling it is primarily for comparison, demonstrating how much longer it takes without the power of compound returns.

How often should I review my passive income plan?

You should review your plan and investment performance at least once a year. This allows you to adjust your monthly contribution, re-evaluate your expected return, and ensure you are still on track for your financial independence date.