Prospyr
Prospyr
Monthly income$416.67
Annual income$5,000.00

Lump sum deployment

Lump Sum Income Modeler

See what a lump sum can cover in monthly passive income without turning it into a dashboard or saved plan.

Your inputs

Edit the values below to model your own situation.

What you'll need

  • Total lump sum available to invest
  • Your target monthly income from the portfolio
  • Your approximate marginal tax rate (use the Tax Bracket Calculator if unsure)

Advanced assumptions

Aha moment

Income per payment period

Monthly

$416.67 per month

A $100,000 lump sum at 5.0% yield pays you $416.67/month — $5,000.00/year — in passive income. That's enough to covers a typical grocery bill.

Annual income total

$5,000.00

Years to double

14.4 years

What this covers

Covers a typical grocery bill

Based on a monthly equivalent of $416.67.

Result explainer

What this lump sum produces

What this means

Based on the values entered, this lump sum is modeled to produce $416.67/month, or $5,000.00/year.

Why this result happened

  • $100,000 is being modeled at a 5.0% dividend yield.
  • The payment view is set to monthly, which converts the same annual income into $416.67 per month.
  • Basic mode focuses on the current income estimate before adding growth or DRIP assumptions.

What could change this

  • Dividend amounts, market prices, and yields can change after the estimate is made.
  • DRIP and dividend-growth assumptions are projections, not fixed outcomes.
  • Yield alone does not explain payout quality, volatility, tax treatment, or withholding tax.

Next number to check

Check monthly income coverage

Use the Portfolio Conversion Tool to compare this income estimate against a broader capital conversion scenario.

This is an informational estimate based on the values entered, not personalized financial advice.

This calculator is for informational purposes only and does not constitute financial advice.

Prospyr is free. If this calculator helped, buy me a coffee ☕

Result meaning

What your result means

Use this as a plain-English read on the output before changing assumptions.

Number that matters most

Monthly passive income

$416.67

A $100,000 lump sum at 5.0% yield pays you $416.67/month — $5,000.00/year — in passive income. That's enough to covers a typical grocery bill.

Coverage

Covers a typical grocery bill

Rule of 72

At 5.0%, the simple years-to-double estimate is 14.4 years.

Be careful about

  • Dividend income is not guaranteed.
  • Yield alone does not measure investment quality or volatility.

Test next

  • Try a lower yield to see whether the lifestyle coverage still holds.
  • Use the Dividend Calculator to test a specific holding.

Next step

What to run next

Use the next calculator to test the decision your result points toward.

Holding checkDividend CalculatorTest a specific holding or ETF yield against this lump-sum income target.ConversionPortfolio Conversion ToolCompare converting existing capital into income-producing assets.

Educational context

Deploying a Lump Sum for Income in Canada

Deploying a lump sum into income-producing assets is one of the biggest portfolio decisions many investors make. The right mix depends on income needs, risk tolerance, and tax treatment.

What is the safest way to deploy a lump sum into income investments?

Many investors blend more stable income assets with equity income assets rather than relying on one source alone.

Should I reinvest surplus income or take it all as cash?

Reinvesting surplus income can materially improve long-term sustainability. Taking everything as cash can reduce longevity.

How does dividend growth affect a lump sum income portfolio?

Dividend growth can help close an income gap over time even if the portfolio starts below the desired target.

How do CPP and OAS affect my lump sum income strategy?

Government income sources reduce the amount your portfolio must generate on its own.

What is the break-even yield for a lump sum income portfolio?

It is the minimum yield needed for a given lump sum to support a target income level, subject to taxes and assumptions.

How does a market crash affect a lump sum income portfolio?

A major drawdown early in retirement or decumulation can create sequence risk, especially if withdrawals continue during the decline.

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Freshness and methodology

Last reviewed

April 2026 with 2026 CRA planning inputs.

Methodology

Sustainability projections use dividend yield, annual withdrawal rate, and a 30-year horizon with optional inflation and crash stress-test scenarios.

Updated for 2026 CRA limits · Last verified April 2026

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