Dividend Calculator
See your dividend income per payment, per month and per year after tax. Find how much you need to invest for a monthly income goal and what reinvesting adds over time.
Enter the tax taken from your dividends, if any (for example a withholding tax on foreign shares). Reinvestment assumes the share price stays the same and every after-tax payment is used to buy more.
How to use the Dividend Calculator
- Enter the amount invested, the yearly dividend yield and how often the dividend is paid.
- Add any tax withheld from your dividends. The yearly, monthly and per-payment amounts appear straight away.
- Enter a monthly income goal to see how much you would need to invest to reach it.
- Enter a number of years, and optionally a dividend growth rate, to see a year-by-year table of reinvested dividends.
Dividend income formula
Yearly dividend = amount invested Ă dividend yield. 10,000 invested at a 5% yield pays 500 a year before tax, or 125 a quarter if it pays quarterly. Any tax withheld comes off each payment.
How much do you need to invest for a monthly income?
Before tax, rounded to the nearest hundred:
| Goal | 3% yield | 5% yield | 7% yield |
|---|---|---|---|
| 500 a month | 200,000 | 120,000 | 85,700 |
| 1,000 a month | 400,000 | 240,000 | 171,400 |
| 2,000 a month | 800,000 | 480,000 | 342,900 |
| 5,000 a month | 2,000,000 | 1,200,000 | 857,100 |
Reinvesting dividends
Using each payment to buy more shares means the next payment is a little bigger. The table in the calculator shows the value and the dividends year by year, assuming the share price does not change. A dividend growth rate raises the yield each year by that percentage.
Yields change when share prices move and when companies raise or cut their dividends, so try a few different yields. To see the gain or loss on the shares themselves, use the Stock Profit Calculator.
Frequently asked questions
How do I calculate dividend income?
Multiply the amount invested by the dividend yield. 10,000 at 5% pays 500 a year before tax. Divide by the number of payments a year to get each payment.
How much do I need to invest to get 1,000 a month in dividends?
At a 5% yield and no tax, 12,000 a year needs 240,000 invested. Enter your own goal, yield and tax in the calculator to get your figure.
Does it include tax?
Enter the percentage withheld from your dividends in the tax box. Rules differ by country and account type, so check what your broker withholds.
How does reinvesting work in the calculator?
Each after-tax payment buys more shares at the same price, so the balance and the next payment grow. A dividend growth rate raises the yield every year by that percentage.
Can I share my calculation?
Copy link to this calculation copies an address with your numbers in it.