How Much Interest Would $10 Million Earn?

As you work on growing your nest egg, it’s important to understand the income it can generate. For example, how much interest would $10 million earn? The returns will depend on your chosen savings vehicles and investment strategies, but there are several different options to explore.

If you are looking for personalized guidance to craft a retirement plan for your unique goals, consider consulting with a financial advisor.

How Much Interest Would $10 Million Earn?

The income you can generate from a $10 million portfolio depends significantly on how you allocate your funds and the types of investments you choose. Higher-risk investments may offer the potential for greater returns, but they also carry the possibility of lower earnings if the investment underperforms or experiences a downturn. Here is a closer look at the income you can expect to receive from several popular investment options if you have $10 million:

1. Savings Accounts

A savings account is one of the safest and most straightforward ways to earn interest on $10 million. Traditional savings accounts often offer relatively low interest rates, but high-yield savings accounts may provide more competitive returns depending on market conditions. The actual income you generate will depend on the annual percentage yield (APY) and whether rates remain steady throughout the year.

For example, at a 4% APY, $10 million could earn approximately $400,000 in interest over one year. At 3%, that annual income would drop to about $300,000. Because savings account rates are variable, those earnings can increase or decrease as broader interest rates change.

The key advantage of savings accounts is stability and liquidity. Funds are generally federally insured up to applicable limits, and you can access your money without market risk. However, long-term returns may not outpace inflation, making savings accounts best suited for capital preservation or short-term cash management within a broader investment strategy.

2. Certificate of Deposit

A CD also offers competitive interest rates, but you will not have access to your funds whenever you like. Instead, you will have to wait until the end of a CD term to tap into the funds. CD terms generally range from three months to five years, but you may find terms that are shorter or longer, depending on the financial institution you choose.

You can find interest rates as high as 3.75% from the best CD accounts. With a $10 million portfolio, this means you could theoretically receive an annual income up to $375,000, if your entire nest egg was held in a CD at that rate (although this is often not advisable). If you are concerned about regular access, you could also consider building a CD ladder.

3. Annuities

An annuity is an insurance product that you buy in exchange for an agreed-upon payment on a regular basis at some point in the future. However, the amount you put into an annuity is not the only factor when it comes to returns. Annuity providers also consider your age, state and gender.

For example, a 59-year-old male from Florida would receive a monthly income of around $50,000 from a $10,000,000 annuity. An annuity calculator can help you calculate exactly how much monthly income you can earn based on a particular annuity.

4. Bonds

Bonds can provide steady income for investors looking to generate returns from $10 million while managing risk. When you buy a bond, you’re essentially lending money to a government or corporation in exchange for regular interest payments. The amount of income depends on the bond’s yield, credit quality and maturity length.

If a diversified bond portfolio yields around 4%, $10 million could generate approximately $400,000 in annual interest. Higher-yield corporate bonds might offer more income, but they also carry greater credit risk. Conversely, government bonds typically provide lower yields but greater stability.

Bonds can help balance income and capital preservation, especially in retirement. However, their value can fluctuate with changes in interest rates, and inflation may erode purchasing power over time. As part of a diversified portfolio, bonds can provide predictable cash flow while helping manage overall investment volatility.

5. Dividend Stocks

Dividend stocks can offer investors a steady income stream. In addition to income, the value of the underlying stock can also grow. On average, dividend stock investors earn between 2% to 5% in dividends each year.

With a $10 million portfolio, that means you would earn between $200,000 to $500,000 per year.

6. Real Estate

Real estate is a very popular investment. Although the returns can vary widely for those buying individual properties, we will consider real estate investment trusts (REITs) for the purposes of this discussion.

REITs have averaged over 10% annually over the last several decades. So, how much interest would $10 million earn in a REIT? Potentially more than $1,000,000.

Other types of accounts you can store your money in include money market accounts, money market funds and high-yield savings accounts.

How to Allocate $10 Million for Income and Growth

A retired couple take their grandchildren camping.

With $10 million to invest, it is important to strike a balance between generating stable income and allowing part of your portfolio to grow. Many high-net-worth individuals use a blended approach, allocating portions of their assets to different investment buckets based on time horizon, risk tolerance and liquidity needs.

A common structure might include dividing the portfolio into three categories:

Short-term income (cash, CDs, Treasuries)
Intermediate-term stability (bonds, annuities, dividend stocks)
Long-term growth (equities, real estate, private markets)

This strategy supports both immediate withdrawals and future income needs.

Strategically using asset allocation allows for both capital preservation and inflation-adjusted income. For example, holding 30% in dividend stocks and bonds, 20% in alternative income like REITs or private credit and 50% in a mix of equities and growth-focused funds may help maintain purchasing power while still generating strong annual income.

Factors That Impact Retirement Income

How much income $10 million can generate in retirement depends on several key factors beyond just the headline interest rate. The mix of investments you choose, such as savings accounts, bonds, dividend-paying stocks or alternative assets, directly affects both income potential and risk. Higher returns often come with greater volatility, which can influence how stable your retirement income feels year to year. These are some important variables to keep in mind, such as:

Taxes: You cannot completely avoid taxes in retirement, but working with a qualified financial advisor can help you avoid paying more than you needed.
Diversification: It is not generally a good idea to put all of your eggs in one basket. Instead, consider building a diverse portfolio to generate different income streams.
Inflation: The funds your investments earn in the future might be less valuable. Use our inflation calculator to see how this economic factor could diminish your returns.

Each of these factors can significantly impact how much interest $10 million could earn. As you develop a plan, don’t forget to account for these variables, especially the ones you can control, such as diversification.

Sustainable Withdrawal Rate

A sustainable withdrawal rate represents the percentage of your savings you can withdraw annually for living expenses without depleting your investment funds. For many people considering retirement with $10 million, this concept offers a critical guideline for financial planning.

Typically, a 4% to 5% annual withdrawal rate is considered a good benchmark. However, the right rate will depend on factors like your financial goals, investment strategy and inflation.

For instance, if you adopt a 5% sustainable withdrawal rate on a $10 million portfolio, you could withdraw $500,000 annually to cover your expenses, equating to $41,666.67 per month. Assuming your investments generate a 5% return, such as through bonds, your funds could sustain this withdrawal rate for 40 years without diminishing or altering your monthly income.

Your sustainable withdrawal rate ultimately depends on how your portfolio is structured and your retirement timeline. Careful planning ensures you can maintain your desired lifestyle and avoid outliving your savings.

Bottom Line

A retiree planning retirement income with $10 million.

How much interest $10 million earns depends largely on how it’s invested and the broader economic environment. Conservative options like savings accounts and high-quality bonds can generate substantial annual income, often in the hundreds of thousands of dollars, while maintaining relative stability. However, factors such as interest rates, inflation, taxes and withdrawal strategy all influence how much income you ultimately keep and how long it lasts.

Tips for Retirement Planning

The best way to determine how much you can earn in retirement is to probably speak to an expert who can help navigate your personal financial situation with you. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
It’s important to evaluate your risk tolerance because not all investments are created with equal risk. Weigh out your risk tolerance with SmartAsset’s free asset allocation calculator.
Projecting your savings growth is important because the money you save will earn interest. When compounded over time, those interest savings can add up quickly. See how far your savings will grow with SmartAsset’s free savings calculator.