How much interest does $10000 earn in a year ?

For the past two years and particularly since the beginning of 2022, we have been experiencing increasing inflation, which is expressed by the general increase in prices. In this unpleasant context for a portfolio, it is logical to look for a way to avoid seeing our savings melt away like snow in the sun. To help you plan ahead, we have simulated the gains you could expect by investing your savings at different rates. The selected investments range from $10000 to $10 million with returns ranging from 1% to 20%.

In this blogpost :

How much your savings earn: choosing your investment and the corresponding rate

Because we do not all have the same investor profiles or the same attitude to risk, we have selected several rates corresponding to several investments, ranging from the first savings products available in banks to the most “exotic” investments.

From the safest to the most dynamic investment for your money, you will find in this list an investment adapted to your profile while projecting you on the opportunities that these investments offer.

The corresponding rates and investments are as follows:

1%: this is the return obtained at the end of a year with a traditional bank passbook (generally between 0.5 and 1%)
3%: an accessible rate with a diversified life insurance policy
4.5%: thanks to real estate investment trust
6%: with rental property or collectors’ items
9%: a long-term investment in the stock market
20%: by investing in a decentralised finance protocol (DeFi)

By crossing them with the savings invested ($10000, $50000, $100000, $200000, etc.) these different rates will allow us to simulate potential capital gains.

Calculate how much your invested savings earn each month

We have selected the most sought-after investments, namely: how much $10000, $50000, $100000, $200000, $400000, $500000 and $800000 per month to invest.

However, you may have a different capital in mind or in your account.

To help you, we give you the calculation method used to determine how much you could earn per month:

(Amount invested in dollars X net rate of return) / 12 months

Example:

If you have $51,465 to invest at 6% then :

(51 465 x 0,06) / 12 = $257,32

If you invest $51,465 at an annual rate of 6%, you will earn $257.32 per month.

Whether you have $1,000 or $1 million to invest in real estate, stock market shares or life insurance, you can now use this calculation method with any starting capital.

How much does $10 million invested per month earn?

10 million invested at 1% yields $8,300 per month, or $100,000 per year
10 million invested at 3% yields $25,000 per month, or $300,000 per year
10 million invested at 4.5% yields $37,500 per month, or $450,000 per year
10 million invested at 6% yields $50,000 per month, or $600,000 per year
10 million invested at 9% yields $75,000 per month, or $900,000 per year
10 million invested at 20% yields $166,000 per month, or $2 million per year

How much does $3 million invested per month earn?

3 million invested at 1% yields $2,500 per month, or $30,000 per year
3 million invested at 3% yields $7,500 per month, or $90,000 per year
3 million invested at 4.5% yields $11,250 per month, or $135,000 per year
3 million invested at 6% yields $15,000 per month, or $180,000 per year
3 million invested at 9% yields $22,500 per month, or $270,000 per year
3 million invested at 20% yields $50,000 per month, or $600,000 per year

How much does $2 million invested per month earn?

3 million invested at 1% yields $2,500 per month, or $30,000 per year
3 million invested at 3% yields $7,500 per month, or $90,000 per year
3 million invested at 4.5% yields $11,250 per month, or $135,000 per year
3 million invested at 6% yields $15,000 per month, or $180,000 per year
3 million invested at 9% yields $22,500 per month, or $270,000 per year
3 million invested at 20% yields $50,000 per month, or $600,000 per year

How much does $1 million invested per month earn?

1 million invested at 1% yields $833 per month, or $10,000 per year
1 million invested at 3% yields $2,500 per month, or $30,000 per year
1 million invested at 4.5% yields $3,750 per month, or $45,000 per year
1 million invested at 6% yields $5,000 per month, or $60,000 per year
1 million invested at 9% yields $7,500 per month, or $90,000 per year
1 million invested at 20% yields $16,666 per month, or $200,000 per year

How much do $800,000 investments earn per month?

800,000 invested at 1% yields $666 per month, or $8,000 per year
800,000 invested at 3% yields $2,000 per month, or $24,000 per year
800,000 invested at 4.5% yields $3,000 per month, or $36,000 per year
800,000 invested at 6% yields $4,000 per month, or $48,000 per year
800,000 invested at 9% yields $6,000 per month, or $72,000 per year
800,000 invested at 20% yields $13,333 per month, or $160,000 per year

How much do $500,000 investments earn per month?

500,000 invested at 1% yields $416 per month, or $5000 per year
500,000 invested at 3% yields $1250 per month, or $15,000 per year
500,000 invested at 4.5% yields $1875 per month, or $22,500 per year
500,000 invested at 6% yields $2,500 per month, or $30,000 per year
500,000 invested at 9% yields $3750 per month, or $45,000 per year
500,000 invested at 20% yields $8,333 per month, or $100,000 per year

How much do $400,000 investments earn per month?

400,000 invested at 1% yields $333 per month, or $4000 per year
400,000 invested at 3% yields $1,000 per month, or $12,000 per year
400,000 invested at 4.5% yields $1,500 per month, or $18,000 per year
400,000 invested at 6% yields $2,000 per month, or $24,000 per year
400,000 invested at 9% yields $3,000 per month, or $36,000 per year
400,000 invested at 20% yields $666 per month, or $80,000 per year

How much do $200,000 investments earn per month?

200,000 invested at 1% yields $166 per month, or $2000 per year
200,000 invested at 3% yields $500 per month, or $6,000 per year
200,000 invested at 4.5% yields $750 per month, or $9,000 per year
200,000 invested at 6% yields $1,000 per month, or $12,000 per year
200,000 invested at 9% yields $1,500 per month, or $18,000 per year
200,000 invested at 20% yields $333 per month, or $40,000 per year

How much do $100,000 investments earn per month?

100,000 invested at 3% yields $250 per month, or $3000 per year
100,000 invested at 4.5% yields $375 per month, or $4500 per year
100,000 invested at 6% yields $500 per month, or $6,000 per year
100,000 invested at 9% yields $750 per month, or $9,000 per year
100,000 invested at 20% yields $1666 per month, or $20,000 per year

How much do $50,000 investments earn per month?

50,000 invested at 1% yields $41 per month, or $500 per year
50,000 invested at 3% yields $125 per month, or $1,500 per year
50,000 invested at 4.5% yields $187.5 per month, or $2250 per year
50,000 invested at 6% yields $250 per month, or $3,000 per year
50,000 invested at 9% yields $375 per month, or $4500 per year
50,000 invested at 20% yields $833 per month, or $10,000 per year

How much do $10,000 investments earn per month?

10,000 invested at 1% yields $8.3 per month, or $100 per year
10,000 invested at 3% yields $25 per month, or $300 per year
10,000 invested at 4.5% yields $37.5 per month, or $450 per year
10,000 invested at 6% yields $50 per month, or $600 per year
10,000 invested at 9% yields $75 per month, or $900 per year
10,000 invested at 20% yields $166 per month, or $2,000 per year

Tax and diversification: two key elements to make your investments pay off

Diversify your capital so that it earns you more per month

When you invest, you always face a risk.

In investing, risk management and risk management are fundamental! If you expose yourself too much to risk, you are more likely to subject your portfolio and your capital to high volatility: both up and down.

Unless you are a professional investor (trader), the aim is not to be too exposed to this volatility.

The key is to diversify your money.

Find out how to invest in whisky to diversify your portfolio

Stocks, bonds, crypto-currencies, real estate, collectibles, private equity… If tomorrow the price of your favourite CAC40 listed company collapses, (of course you will be very annoyed) but this will have no direct impact on your standard of living and the returns on your other investments will be fine: your rental property will continue to generate rent, your bonds will continue to generate interest, etc…

On the other hand, imagine the worst case scenario if you had decided to invest your $100,000 in a single share and the company in question went bankrupt?

Remember: diversify your investments, select them according to your investor profile and your return objectives. Finally, don’t forget the issue of taxation.

By keeping all these elements in mind, you will be sure to optimise your savings, whether you have $10,000, $100,000 or $500,000 to invest, it will pay off.