The income desk · 01
Pick the monthly cash you want, then see the capital it would take at different distribution yields. Change the tax assumption to understand the gap between gross and spendable cash.
Use a distribution yield you have researched, or try several assumptions. This is a cash payout estimate, not a forecast of investment returns.
Capital needed · estimate
$1,028,571
To produce about $3,000 a month on average at 3.5% annual payouts after your 0% tax assumption.
At 2% payout
$1,800,000
At 3% payout
$1,200,000
At 4% payout
$900,000
At 5% payout
$720,000
Formula: monthly target × 12 ÷ annual yield ÷ (1 − entered tax rate). Payments may not arrive monthly; yields and share values can change, and a high payout does not imply a high total return.
Keep the research coming
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Or create a free TFS account for Bank Watch →The annual target is your monthly amount × 12. We divide by the assumed yield, then adjust for any tax percentage you enter. For example, $3,000 a month at a 4% payout requires about $900,000 before tax.
No. A stock or fund can pay cash while its price falls, and fund distributions can include more than income. The SEC explains fund distributions and total return.
Not necessarily. Funds and companies set their own distribution dates and can change payouts. Build a cash buffer for bills due between payments. Try the income portfolio planner to stress test a mix.
Use your target here, then compare dividends, cash interest, and bills in the income portfolio planner. You can see every result without an account.