Compound Mint
How much to invest to make $1,000 a month?
One simple formula. Before tax, hypothetical, not guaranteed.
Educational content only. Not financial advice.
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The formula
$1,000 a month is $12,000 a year. Divide $12,000 by the yearly rate your money pays out.
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What you need at each rate
3%: $400,000. 4%: $300,000. 5%: $240,000. 6%: $200,000.
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Why 4% is the usual number
The 4% rule, from William Bengen's 1994 research, is a rule of thumb, not a promise.
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How long to build $300,000
From $0 at a hypothetical 7% a year: $500 a month takes about 21 years 7 months. $2,000 a month, about 9 years.
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Do not forget taxes
To keep $1,000 a month after a hypothetical 15% tax, you need about $352,941 at 4%.
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Plan your own number
Full formula, tables and calculators in the guide.
Read the full guideEducational content only. Not financial advice. Examples are hypothetical, not guaranteed.