The amount of interest you can earn on $1,000,000 depends heavily on the investment type, the interest rate, and whether you’re using simple or compound interest. Here’s a concise guide to typical possibilities in 2025, highlighting rough annual income ranges to set expectations. Direct estimates by common options

• High-yield savings or short-term CDs (low risk, liquidity):
  • At around 4% APY, you’d earn about $40,000 per year before tax.
• Treasury or highly rated corporate bonds (moderate risk, periodic income):
  • Bond yields commonly range from roughly 3% to 6% depending on credit quality and maturity; expect $30,000–$60,000 per year in coupon payments, before taxes.
• Municipal bonds (tax-advantaged in the U.S., if you’re in a higher tax bracket):
  • Yields often fall in the 3–5% range for high-grade issues; after tax-equivalent income can resemble higher after-tax yields for certain taxpayers.
• Dividend-focused stock portfolios (higher risk, potential growth plus income):
  • Dividend yields commonly 2–4% with potential for capital gains; income of about $20,000–$40,000 per year, plus any price appreciation or depreciation.
• Real estate investment trusts (REITs) or other income-focused vehicles (moderate to higher risk):
  • Yields frequently in the 4–7% range; annual income around $40,000–$70,000 before taxes, but with greater price volatility.

Important considerations

• Taxes: Interest from banks and most bonds is typically taxed as ordinary income, while qualified dividends and some municipal bond income can be taxed at favorable rates. Tax considerations can significantly affect after-tax income.
• Inflation and real returns: In a rising-rate environment, capital preservation and real (inflation-adjusted) returns matter. A higher nominal rate may not translate to higher after-inflation purchasing power if inflation runs high.
• Liquidity: Access to cash matters. CDs and some bonds offer varying degrees of liquidity; the more liquid an option, often the lower the yield.
• Fees and minimums: Some investment vehicles have minimum investment requirements or ongoing management fees that reduce net income.
• Diversification: A diversified mix can balance risk and steady income. Relying on a single instrument increases risk of capital loss or income disruption.

How to tailor for your situation

• Define risk tolerance: If capital preservation is paramount, prioritize high-quality, liquid income vehicles (high-yield savings, short-term Treasuries, investment-grade bonds) with stable income.
• Clarify tax considerations: Identify whether tax-advantaged accounts or specific jurisdictions apply to your situation to maximize after-tax income.
• Set liquidity needs: If funds may be needed soon, lean toward instruments with principal protection and ease of withdrawal.
• Consider time horizon: For longer horizons, a mix of bonds and dividend growth stocks can provide rising income over time through compounding and potential dividend increases.

If you’d like, share your country, tax situation, risk tolerance, and liquidity needs, and a tailored income range and mix of investment examples can be sketch’d out to fit those parameters.