i What this calculator does
Quick answer: At typical 2026 yields, R10,000 a month after tax takes roughly R1.6 million to R3 million invested, depending on the mix and how each source is taxed. With the default inputs the calculator returns capital needed: R2 006 689.
“How much do I need to invest to earn R10,000 a month?” has a different answer in South Africa for every kind of income, because each is taxed differently. Interest is taxed at your marginal rate above an annual exemption; JSE dividends lose 20% dividends tax but no income tax; REIT distributions escape dividends tax but are taxed in full as income; and offshore dividends are taxed on 20/45 of the amount with the foreign withholding credited. This calculator splits your capital across those four sources in the mix you choose, works out the tax on the combined income with the 2026/27 tables and your other income, and solves for the capital that leaves your target after tax.
It also shows the capital needed if everything were in one source, and how long your current savings and monthly contributions take to reach the target while inflation pushes it up. Living on dividends alone is examined in can I live off dividends from JSE shares.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
Common results
What the calculator returns as the monthly income after tax changes, with every other input at its default (share in sa interest 40, share in jse dividend shares 40, share in sa reits 20, interest rate 7.5, jse dividend yield 4, reit distribution yield 8.5, offshore dividend yield 2.5, other taxable income a year 0).
| Monthly income after tax | Capital needed | After-tax yield | Time to get there |
|---|---|---|---|
| R5 000 | R1 003 344 | 5.98% | 10.3 years |
| R10 000 | R2 006 689 | 5.98% | 19.8 years |
| R20 000 | R4 244 176 | 5.65% | 32.6 years |
| R30 000 | R6 649 517 | 5.41% | 41.0 years |
| R50 000 | R11 854 921 | 5.06% | 52.1 years |
| R100 000 | R26 364 051 | 4.55% | 67.6 years |
Figures used in this calculator
The South African constants this calculator relies on, with the page that holds the current value and the date it was last verified.
- Interest exemption: R23,800 under 65, R34,500 from 65 (2026/27). Source: Interest and Dividend Tax Exemptions (verified 29 September 2026).
- Dividends tax: 20% on South African dividends. Source: Interest and Dividend Tax Exemptions (verified 29 September 2026).
- Income tax brackets and rebates, 2026/27: Primary rebate R17,820; threshold R99,000 under 65. Source: SARS Income Tax Tables 2026/27 (verified 27 September 2026).
Why the mix changes the capital
Interest pays the highest yield and, for someone with little other income, very little tax, because the R23,800 exemption (R34,500 from 65) and the tax threshold absorb most of it. Dividends pay less but are taxed at a flat 20%, which is cheaper than interest once the interest above the exemption is taxed in the 26% bracket or higher. REITs pay a high yield taxed as income. The calculator weighs those effects for your own income, which is why a mix often needs less capital than any single source.
Income now against income later
A capital sum that pays R10,000 a month today pays the same R10,000 in ten years if the income is all spent, and that buys about a third less at 4.5% inflation. Interest does not grow at all; dividends and REIT distributions tend to grow with company earnings and rents. The time-to-target figure accounts for inflation by raising the capital needed each month, so a plan that looks ten years away is not quietly fifteen.
Using tax-free wrappers
Income inside a tax-free savings account is not taxed at all, so the first R46,000 a year you can contribute, up to R500,000 over a lifetime, is the cheapest place for the highest-taxed source, usually interest or REITs. The TFSA calculator shows how far that goes; this calculator assumes the income is taxable, so it is the conservative figure.
Spotted an outdated figure? If a rate, limit or formula in this calculator no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
Frequently asked questions
How much do I need to invest to earn R10,000 a month in South Africa?
About R1.6 million at a 7.5% interest rate for someone under 65 with no other income, because the exemption and tax threshold cover most of the tax; more if you have a salary or choose lower-yielding shares. The calculator works it out for your mix and income.
Is interest or dividends better for passive income?
Interest pays more and is taxed lightly at low incomes; dividends pay less but are taxed at a flat 20% and usually grow. Once interest above the exemption is taxed at 26% or more, dividends are taxed less heavily per rand of income.
How are REIT distributions taxed?
Distributions from South African REITs are exempt from the 20% dividends tax but are taxed in full as income at your marginal rate. Inside a TFSA they are tax-free.
What is the interest exemption in 2026/27?
R23,800 a year for under-65s and R34,500 from age 65, on South African interest. Interest above that is taxed at your marginal rate.
Does the calculator include capital growth?
Only while you save. Once you draw the income, it assumes the yield is spent and the capital stays the same in rand, which is the cautious case; growing dividends and rents would help in later years.
Why does the time to reach the target keep moving?
Because the capital needed rises with inflation while you save. A target of R10,000 a month in today’s money needs more rand capital every year, so the calculator compares your savings with a moving target.
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