Passive income is the dream for many — sitting on a beach and enjoying life while getting email notifications of deposits into your bank account. While it may not look exactly like that, there are plenty of ways to earn extra money with very little effort.
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Your first thought may be to invest in a real estate rental property, exchange traded funds (ETFs) or even dabble in affiliate marketing on your social media accounts, but you could be overlooking some major forms of passive income through one singular company. Microsoft is one of the biggest companies in the world, and with its hugely successful stock and new AI products, it offers a number of ways to grow your wealth.
Buy and Sell Microsoft Stock
The most passive way to make income with Microsoft is to become a Microsoft investor. Microsoft stock has had a great run recently, with an average 20% increase each year over the last five years. So, if you invest $20,000, there’s a good chance you’ll see about a $4,000 gain in a year. This isn’t guaranteed, but based on recent performance, it’s a possibility.
To invest in Microsoft stock (MSFT), you’ll need a brokerage account at a reliable broker like Fidelity or Vanguard. You can buy MSFT shares, hold them for a year and enjoy the growth. After a year, you might be able to net around $4,000 — and selling after holding them for a year or longer gives you the benefit of long-term capital gains tax rates, too.
For perspective on earning passive income in the short-term, here are a few key takeaways as to how Microsoft stock (MSFT) is performing as of Sep. 17, 2025, according to MarketWatch:
- Stock price: $516.88
- Market cap: $3.78 trillion
- 52-week high: $555.45
- 52-week low: $344.79
- Dividend yield: 0.65%
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Collect Microsoft Stock Dividends
Microsoft stock also pays out quarterly dividends to investors. While the dividend isn’t great — under 0.7% per year yield — this is income that’s automatically deposited into your brokerage account every three months. Truly passive!
You’ll need a sizable investment in Microsoft stock to reach the goal of $4,000 per year in passive income.
Here’s the math:
- Dividend yield: 0.65%
- Share price: $516.88
- Annual dividend per share: $3.36
To earn $4,000 per year, you’d need:
- $4,000 ÷ 0.0065 = $615,385 invested
- $615,385 ÷ $516.88 = 1,191 shares
Now, buying 1,191 shares of MSFT isn’t usually something you can do overnight. You might need to dollar-cost average into the stock over a long period of time. But this is what it takes to earn $4,000 annually in passive income from Microsoft stock dividends. Chances are, you’ll earn far more from Microsoft stock appreciation than dividends.
Use Copilot To Code an App
Microsoft’s artificial intelligence (AI) tool, Copilot can help you code quickly. Copilot is built into GitHub and costs about $10 per month, but it’s also available in some Microsoft 365 plans. Copilot can’t build an app for you, but it can help you build one — even if you’re a coding beginner.
The idea is to tell Copilot what you’re trying to do and have it provide the code for each part of your app. Some ideas for a simple app to sell include a budget tracker, a habit tracker, a side hustle income log or a workout tracker.
Now, to be honest, if you have no experience with coding, it might be challenging to build a functioning app. But you can learn from Copilot, as well as have it write lines of code for you.
Once your app works, you can sell it online through places like Gumroad, the App Store or Google Play. Here’s an example of how you could make $4,000 selling a Copilot-coded app:
- App price = $10
- Sell 400 downloads = $4,000
- Monthly = 34 downloads per month
This income stream isn’t passive right away. But once you build it and list it online, you could wake up to sales every day!
Use Bing To Create Images You Can Sell
Microsoft search engine Bing now offers AI image creation. Bing Image Creator, which uses Dall-E, lets you generate AI art from text prompts. You get 15 credits per month to create images, and it’s quick and easy to use.
Now, the key to making passive income from these images is selling them online — creating printable items like wall art, digital planners, coloring pages and even stock images. You can sell your images on sites like Etsy and Redbubble or upload them to stock photo sites like Adobe Stock or Shutterstock.
The key to making it passive is to set up an online store that allows people to buy the images to print at home. No need for shipping or physical product costs.
Here’s an example of how you could make $4,000 selling images from Bing Image Creator:
- Digital print price = $5 each
- Sell 800 images = $4,000
- Monthly = 68 downloads per month
Final Take To GO: Can You Actually Make Passive Income From Microsoft?
You can utilize Microsoft’s stock and tools in a variety of ways to create passive income. However, as with most income streams, it will require a little work upfront. Whether you decide to invest in the company itself or use their AI tech to create something you can sell, the key is to get started somewhere.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 4 Ways To Generate $4K a Year in Passive Income With Microsoft
