By now, you know what pays passive income (Step 1) and what to buy first (Step 2).
This passive income calculator shows you how much you can realistically earn from dividends and ETF distributions using R20,000 (South Africa) or $1,000 (international). You’ll get monthly, quarterly and yearly estimates you can copy, adjust, and use immediately.
This final step answers the most important question: “If I invest X… how much do I actually earn?”
No hype. No guessing. Just realistic numbers you can adjust.
1) First, Reset Expectations (This Matters)
Passive income is capital-dependent. Small capital = small payouts at first.
That is not a failure — it’s how the math works. The goal of this step is:
- To show realistic income
- To remove false expectations
- To give you a repeatable structure
Consistency beats starting amount. R20,000 or $1,000 is powerful when combined with monthly contributions.
2) Passive Income Calculator Formula (Use This Every Time)
You only need one formula:
- Annual income: Investment × Yield
- Quarterly income: Investment × Yield ÷ 4
- Monthly income: Investment × Yield ÷ 12
Yields change. These are estimates — not guarantees.
3) The 3-Bucket Income Structure
Instead of chasing one “perfect” investment, we use three buckets:
- Monthly bucket → steady cashflow
- Quarterly bucket → larger periodic payouts
- Yearly bucket → growth + annual withdrawal
A clean, beginner-friendly split: 40% monthly / 40% quarterly / 20% yearly
4) Passive Income Calculator: $1,000 Global Example
| Bucket | Asset Type | Example Instrument | Invest | Yield (Example) | Estimated Income |
|---|---|---|---|---|---|
| Monthly | Income / Bond ETF | JEPI / BND (monthly) | $400 | 5% | $1.67 / month |
| Quarterly | Dividend / REIT ETF | SCHD / VNQ | $400 | 4% | $4.00 / quarter |
| Yearly | Growth ETF | Broad market ETF | $200 | 4% rule | $8 / year |
Total income is small — and that’s expected. What matters is that the system works.
5) South Africa Example — R20,000 Portfolio
| Bucket | Asset Type | Example Instrument | Platform | Invest | Yield | Estimated Income |
|---|---|---|---|---|---|---|
| Monthly | Income ETF / Bond exposure | Global income ETF (via EE) | EasyEquities | R8,000 | 6% | ~R40 / month |
| Quarterly | Dividend ETF | Satrix DIVI | EasyEquities | R8,000 | 6% | ~R120 / quarter |
| Yearly | Growth ETF | Top 40 / Global ETF | EasyEquities | R4,000 | 4% rule | ~R160 / year |
This is how passive income starts: quietly. The scale comes from adding capital consistently.
6) How This Scales Over Time
If you add just R1,000 per month:
- Your monthly bucket grows
- Your payouts compound
- Your income accelerates
Passive income is not built in one deposit. It’s built in layers.
7) Common Mistakes That Kill Income
- Expecting large income from small capital
- Chasing high yields without stability
- Ignoring payout schedules
- Stopping contributions too early
8) Your Action Checklist
- Choose your platform
- Apply the 40/40/20 split
- Buy distributing ETFs
- Track your payout dates
- Add capital monthly
Helpful links (platform + definitions)
SPI Roadmap (Completed)
You now have a full framework — from understanding to execution.
— Simple Passive Income (SPI)
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