Passive Income Calculator
Calculate your potential passive income from various sources. Plan your financial freedom by estimating returns from investments, rental properties, dividends, and other passive income streams.
About Passive Income Calculator
The Passive Income Calculator helps you estimate potential earnings from various passive income sources. It considers factors like initial investment, return rates, compounding frequency, and time period to provide accurate projections. Use it to plan your path to financial independence and build multiple streams of passive income.
Step 1: Select Income Source
Choose the type of passive income you want to calculate
Step 2: Enter Investment Details
Input your initial investment and expected return rate
Step 3: Set Time Period
Specify the duration for your investment
Step 4: Get Results
View your projected passive income and growth
How to Use the Calculator
Step 1: Select Income Source
Choose the type of income you want to calculate
Step 2: Enter Investment Details
Input your initial investment and expected return rate
Step 3: Set Time Period
Specify the duration for your investment
Step 4: Get Results
View your projected passive income and growth
Benefits
Financial Freedom
Plan your path to financial independence with multiple income streams
Investment Planning
Compare different passive income sources and their potential returns
Wealth Building
Understand how passive income can grow your wealth over time
Time Management
Plan how to achieve your financial goals with minimal active effort
Risk Assessment
Evaluate different passive income strategies and their risks
Smart Decisions
Make informed choices about your passive income investments
Key Features
Passive Income in India: Sources and a Worked Plan
In India, "passive income" usually means earnings that need little day-to-day effort after setup — not zero work. Common sources include rental yield (residential or commercial), dividend-paying stocks and equity mutual funds, interest from FDs/RDs, sovereign bonds/G-Secs, and royalties (content, patents). Rental income is taxable under "Income from House Property"; dividends are taxed in the investor's hands; FD interest is added to total income.
Worked example — target ₹25,000/month passive: A ₹60 lakh portfolio split as 40% debt (7% yield ≈ ₹1.68L/year), 40% dividend equity (2.5% yield ≈ ₹60k/year), and 20% rental net yield (6% on ₹12L equity ≈ ₹72k/year) generates roughly ₹3 lakh/year — about ₹25,000/month before tax. Reaching that level typically takes years of SIP accumulation or a paid-off second property; use this calculator to model your mix and timeline.
Realistic expectations: Bank FDs are passive but inflation eats real returns. Equity dividends fluctuate. Rental yields in Bengaluru or Pune often run 2.5–4% gross on residential property — factor maintenance, vacancy, and property tax. For most salaried Indians, building passive income starts with maxing PPF and SIP, then adding rental or dividend layers later.
Guide by our Tools Editor. See Investment Calculator and PPF vs ELSS. Tax rules per Income Tax Act — consult a CA for your slab.
Frequently Asked Questions
What is passive income?
Passive income is money earned with minimal active effort or direct involvement. It includes earnings from investments, rental properties, dividends, royalties, and other sources that don't require continuous active work.
How is passive income calculated?
Passive income is calculated based on several factors including initial investment, return rate, compounding frequency, and time period. The calculator uses standard financial formulas to project potential earnings and growth over time.
What are common sources of passive income?
Common sources include rental income, dividend stocks, interest from savings accounts, royalties from creative work, affiliate marketing, peer-to-peer lending, and income from digital products or online courses.