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  5. Target Income Calculator: Required Capital, Yield, Taxes & Gap
Income Runway

Translate a lifestyle income goal into capital, yield, and time

A target income plan is more useful when it separates gross yield from taxes, fees, inflation, and a safety margin. Use the calculator to see how much capital your desired income really requires and how quickly your current savings path can close the gap.

Model the drag

Fees, taxes, vacancy, and platform costs reduce spendable income. Enter them before trusting a yield headline.

Stress-test yield

Compare conservative and aggressive yield cases so the plan does not depend on a single optimistic assumption.

Validate assumptions

Use official investor education resources such as Investor.gov and confirm tax treatment locally.

The durable number is not the headline yield. It is the after-fee, after-tax yield that reliably funds your target income.

Frequently Asked Questions

  • It annualizes your desired net income, adds a safety buffer, then divides that income need by your estimated after-fee, after-tax yield. For investing education, see Investor.gov.
  • Enter the annual gross yield you expect before taxes and recurring fees. The expense-rate field can model fund expense ratios, advisory fees, platform fees, vacancy drag, or maintenance reserves.
  • Income capital is yield-sensitive. A 3% net yield needs about twice as much capital as a 6% net yield for the same income stream.
  • No. It is a planning model. Verify assumptions, risk, taxes, and product details with qualified professionals and official investor resources such as FINRA.

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Target Income Calculator

Required Capital, Yield, Taxes & Gap

Inputs

Income target

$

Income Frequency

Yield, taxes & drag

%
%
%
%

Current progress

$
$/ mo
%
years

Goal Basis

Results

Required Capital

$2,839,851

Annual target: $84,486 · Net yield: 3.0%

Capital Gap

$2,739,851

3.5% covered

Current Net Income

$2,975

$248 / mo

Time to Target

63.3 yrs

$1,000/mo saved

Monthly Needed

$19,428

10-yr target

Capital Needed by Yield

$3,975,792
$2,839,851
$1,529,151
3% case
Your yield
7% case

Income Bridge

$113,594
$14,199
$14,909
$66,000
Gross Yield
Fees & Drag
Taxes
Spendable Target

Capital Runway

Capital Runway: Projected Capital: $273,338, Required Capital: $2,839,851$0$709,963$1,419,926$2,129,889$2,839,8510246810
  • Projected Capital
  • Required Capital

Income Math

Net Annual Target
$60,000
Spendable Target
$66,000
Inflation-Adjusted Target
$84,486
Selected Annual Target
$84,486
Future Required Capital
$2,839,851
Selected Target Capital
$2,839,851
Annual Yield
4.0%
Yield After Fees
3.5%
After-Tax Net Yield
3.0%
Taxes
$14,909
Fees & Drag
$14,199
Capital Gap
$2,739,851
Annual Income Gap
$81,511
Goal Covered
3.5%