Nice job! I made some interactive visualizations to calculate something very similar:<p><a href="https://www.workfortime.com/investment-calculator/" rel="nofollow">https://www.workfortime.com/investment-calculator/</a><p><a href="https://www.workfortime.com/retirement-calculator/" rel="nofollow">https://www.workfortime.com/retirement-calculator/</a><p>I tried to show how age and length of investment really impact how much wealth you can create.
Having hand rolled my own retirement calculator (excel) with a lot of other variables that seem like overkill at first, I think this is very misleading if you don't at least account for inflation. It gets complicated real quick when you start realizing that if you need amount X and it takes Y years to get that X amount, the goalposts have moved by the time you actually save up to X, and now may need 1.2X. Not to mention that the passive income buying power will go down each year, so you actually need to have passive income growing at the same rate of inflation. Yes, this complicates and it would be nice to have a simple calculator, but the reality is there is no real utility for this other than to highlight the principle of "gotta have money to make money".
Check out <a href="https://firecalc.com" rel="nofollow">https://firecalc.com</a> for a great utility to estimate what you need to retire on.
I assume this does not take into account taxes?<p>If not, I would like to see an option to input your tax rate and get a more accurate number. If I want to get $10,000 in passive income a month, a 12% return from a $1,000,000 investment per year won't do it because I'll need to pay taxes on the $120,000.
I think that comments here are really negative towards capitalism and generally saving for passive income. I would just like to say that even if it's difficult to achieve 1000$ passive income it's always good to generate any passive income at all. Even if it's 5$ it's good once you calculate how much it will give you in your whole life (if you are young of course). Saving is like a snowball that accumulates money. I am nowhere close to FIRE or 1000$ passive income but I like to think that I have savings that allow me not to work for at least X years (mine number is between 3-4 years now). It gives me some 'fuck you' approach towards my job that helps a lot with the stress and improves my assertiveness.
Focus on total return, not yield. A company that returns money to shareholders primarily through stock buybacks is not inherently less valuable than a company that only pays dividends. In a taxable account, capital gains are usually preferable to dividend income. Read about "shareholder yield".
I think the main problem is by the time you've made the $2.5M required to passively make $5k/month your lifestyle and expenses probably exceed $60k/year.<p>It's hard to imagine this reduction in expenses but I guess that's the reality of retirement.
It's sort of like capitalism in a nutshell. Have money? Great, live a grand old life off the dividends. Don't? Get bent. Work your butt off the the rest of your life for scraps.
>> You are much more likely to accumulate a lot of money by starting a business and selling it, only then can you expect to reliably live off of passive income.<p>Yep. That pretty much sums it up.
Great tool, will have to show my family<p>Did you account for the principal also accruing value while you're saving up?<p>E.g. In the HY Savings account for a 1K/month passive income, you need $827,586. If you saved $1K/month, and reinvested that income until you got the $827K, it should only take you 20 years, not 23.<p>The error gets bigger when looking at longer time frames and higher returns.