Interest on $1 million
| Rate (APY) | Per year | Per month | Per day |
|---|---|---|---|
| 2% | $20,000 | $1,667 | $55 |
| 3% | $30,000 | $2,500 | $82 |
| 4% | $40,000 | $3,333 | $110 |
| 5% | $50,000 | $4,167 | $137 |
| 6% | $60,000 | $5,000 | $164 |
APY already includes compounding, so the yearly figure is simply the balance × APY. Monthly figures are the yearly amount ÷ 12; daily ÷ 365.
Can you live off the interest?
$40,000 a year from 4% interest can look like income for life, but two things shrink it. Interest is usually taxed as ordinary income, and inflation means $40,000 buys less each year. If you spend all the interest, the balance stays at $1 million but its buying power falls. See how long $1 million lasts if you also spend some of the principal.
Work it out for any amount
Use the simple interest calculator for a flat rate, the compound interest calculator to see interest earning interest, or the CD calculator for a certificate of deposit.
Every worked example on this page was checked with Calcist's own engine and an independent reference.