Irish Calculators
Saving & investing

Passive Income and Capital Target Calculator

Add the cash income expected from your assets or work back from an annual income target. Price appreciation is excluded, and the assumed income yield is not guaranteed.

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Your numbers

One row per asset; use your assumed distributed yield, not total return. Amounts in the same currency.
%
Distributed cash income; not price appreciation.
Display currency only. Convert all inputs to this currency before calculation.
Your figures stay on this device.

How the calculation works

Passive cash income differs from growth in the quoted value of an asset. This calculator either totals distributed income from supplied assets or works backwards from an annual income target to the capital required at an assumed cash yield.

Annual cash income = sum(asset capital × annual cash yield − annual costs). The inverse goal mode uses capital = (annual target + annual costs) ÷ cash yield.

  1. Choose the direction of calculation

    Asset mode starts with existing or hypothetical capital amounts. Goal mode starts with an income amount and asks what capital would produce it.

  2. Separate income from costs

    Asset mode multiplies each capital balance by its yield, then deducts its annual costs. Goal mode adds costs to the target before dividing by the assumed yield.

  3. Convert annual income for comparison

    In asset mode, the monthly equivalent divides annual net income by twelve. It is an average comparison figure, not a promise that each asset distributes cash monthly.

Worked example: Check Gross annual income

Sample inputs demonstrate the method. They are not a forecast or product offer.

The first example combines 10,000 at 4% with 5,000 at 2%. Those positions generate 400 and 100 of gross annual cash income, giving a combined total of 500.

Income scenario
Income from existing assets
Asset name, capital, annual cash yield %, annual costs
A,10000,4,0 B,5000,2,0
Currency for all amounts
Euro (EUR)

Expected result

Gross annual income
€500.00
Worked example: Check Annual income after costs

Sample inputs demonstrate the method. They are not a forecast or product offer.

Income scenario
Income from existing assets
Asset name, capital, annual cash yield %, annual costs
A,20000,3,100
Currency for all amounts
Euro (EUR)

Expected result

Annual income after costs
€500.00

Understanding your result

Gross income and income after costs answer different questions. Cost assumptions can reduce or eliminate the spendable income even when an asset has a positive distribution yield.

The required capital is an arithmetic scenario. It does not test whether distributions continue, whether capital remains intact or whether the assets can be sold when needed.

Questions you might have

What does the result include?

Add expected cash income from assets without counting undistributed price growth as income.

Which limits should I check?

Income yields are user assumptions and may change or stop.

Choosing the right inputs

Asset name, capital, annual cash yield %, annual costs
For each asset, enter capital, annual distributed yield and annual costs in one currency. Do not include unrealised price appreciation in the yield.
Annual income target before tax
The inverse target is annual income before tax. Use the same annual period for costs that must also be covered.
Assumed annual cash yield
This is a cash-yield assumption, not a guaranteed return. A positive yield is necessary to solve for a finite capital target.

Common mistakes to avoid

  • Do not substitute a total-return forecast for a cash-distribution yield.
  • Tax is not determined by the annual cost field; include only the costs intended for this scenario.

Assumptions to check

  • Income yields are user assumptions and may change or stop.
  • All calculations run on your device. Figures are scenarios based on your inputs, not investment recommendations.

Sources and method

Read our calculation and testing approach.