Passive income retirement calculator
Estimate the passive income you need in retirement and how property and super could contribute. Test rent, debt, drawdown and timeframes for Australian plans.
How much passive income do you need to retire?
Start with the annual income you need in retirement, then work out how much could come from super, rental property and other investments after tax and costs. Debt-free property produces more income than geared property. Projections for Sydney, NSW and Australia are illustrations only; confirm strategy and tax with a licensed financial adviser.
Income, not portfolio size
Many investors aim for a number of properties rather than an income goal. Two debt-free properties can produce more reliable income than several heavily geared ones.
Allow for costs and gaps
Rental income is reduced by vacancy, maintenance, insurance and management. Keep a cash buffer so you are not forced to sell during a downturn.
Plan the debt reduction path
Test when loans could be repaid from rent, savings or selling one property. The calculator shows how timeframes change the income available.
Frequently asked questions
Is rent truly passive income?
Rent still requires management, maintenance and decisions. Property managers reduce but do not remove the work.
Should I sell property to fund retirement?
It depends on tax, costs and goals. Seek personal advice.
Does the calculator include inflation?
Use real (today's dollars) figures or adjust inputs for inflation.