Passive Income Calculator
Have you ever wondered if you generate enough ‘passive income’ to retire or become financially free? Below is our ‘Passive Income Calculator‘ where you can define your income goals, calculate your after-tax passive income from up to 5 sources and see if you are on the cusp of financial freedom.
Unlike our Financial Freedom Calculator, this Passive Income Calculator DOES NOT require an ‘initial investment amount’ or annual ‘rate of return’… it’s really a simplified version 🙂
You can enter between 1 and 5 passive income sources with corresponding tax rates to see if your passive income exceeds your monthly living expenses. If they do, then you are financially free already!
Quick tip: if you already have your ‘after-tax passive income’, you can enter that into the ‘pre-tax passive income’ and leave the ‘tax rate’ blank (or ‘0’).
Do you generate enough passive income to retire? Try our Passive Income Calculator:
If C | TOTAL AFTER-TAX PASSIVE INCOME (per month) is GREATER THAN D | AFTER-TAX INCOME REQUIRED TO COVER ALL EXPENSES (per month), then your monthly passive income is enough for you to be financially free.
If your passive income does not cover your expenses, you can work on the following:
- Decrease the amount of AFTER-TAX INCOME needed to cover your expenses
- Increase the NUMBER OF PASSIVE INCOME SOURCES
- Increase the AMOUNT OF PASSIVE INCOME per source
- Decrease your INCOME TAX RATE