Passive Income Target Calculator

This calculator works out how much capital you need invested to generate a chosen level of passive income each year, whether that income comes from dividends, interest or rental yield. Turning a vague goal like wanting passive income into a concrete number is the first real step towards financial independence, and this tool does the maths for you. You enter your target passive income per year, the net yield you expect your investments to earn after costs, and how much you already have invested. From those three figures the calculator returns the total capital needed to generate your target income, how much you still have left to invest to close that gap, the income your current investments already produce at that yield, and what your target works out to per month. Because a lower yield needs far more capital for the same income, use a realistic, sustainable net yield rather than an optimistic headline rate, ideally after tax, since this income is generally taxable in New Zealand. The figures show the income return only, not capital growth, so they understate total returns for growth assets but give an honest read on income alone. Use it to set a savings target for financial independence, and to track how close your current investments already get you. This is an indicative planning estimate only, not financial advice.

Calculate.co.nz is proud to be partnered with Premium Homes, a recognised leader in eco-friendly, sustainable, and energy-efficient homebuilding. With a dedicated team and award-winning experience, they create homes that prioritise health, comfort, and long-term performance. Their founders, Andrew and Kelly, set out to raise the standard of residential construction in New Zealand by combining practical building expertise with a clear commitment to doing things better for homeowners.

Use a realistic net yield, after costs and ideally after tax, since income is taxable. A lower yield needs more capital. This shows the income return only, not capital growth. Estimate only, not financial advice.