This tool estimates how much dividend income an investment in dividend stocks, funds, or other dividend-paying assets may produce per year and per month, and how much may remain after tax.
If you choose to reinvest dividends, the calculator adds after-tax dividends back into the portfolio to show how the portfolio and future dividend income may grow over time.
Examples
Example 1: Invest 100,000 at a 5% dividend yield
An investment of 100,000 with a 5% annual dividend yield produces about 5,000 per year before tax. With 15% tax, the net dividend is about 4,250 per year, or about 354 per month.
Example 2: Use dividends to help cover expenses
If your expenses are 2,000 per month and your net dividend is about 354 per month, dividends cover approximately 17.7% of your expenses. They do not cover all living costs, but they provide a visible source of additional income.
Example 3: Reinvest dividends
When you choose dividend reinvestment, the calculator adds after-tax dividends back into the portfolio. This increases the investment base and may increase the dividends received in later years.
The amount you already have invested.
Example: enter 5 for a 5% annual dividend yield.
Enter 0 if you are not adding money every month.
How many years you want to estimate.
The model increases dividend yield by this rate once per year while assuming the asset price stays unchanged. Use 0 for a flat-yield estimate.
Used to estimate how much of your monthly expenses dividends may cover.
Enter your own expected tax rate. Tax rules vary by country.
Reinvesting means adding after-tax dividends back to the portfolio.
Enter your numbers to calculate.
First-year results and ending portfolio
Gross dividends per year
0
Estimated tax per year
0
Net dividends per year
0
Net dividends per month
0
Spending goal covered
0%
Estimated portfolio at the end
0
The calculator will explain the result here.
Year-by-year estimate
Year
Portfolio
Gross dividends
Net dividends
Total added
Scroll horizontally to see the full table →
What this calculator does not include
This is a simple estimate. It does not include changing stock prices, currency movement, trading fees, fund fees, tax credits, withholding tax details, or the risk that dividends may be reduced or stopped.
How to use the result
Dividend yield can help compare income from different investments, but a high yield is not always better. Check the business quality, payout history, debt, cash flow, fees, and tax rules before making a decision.
Frequently Asked Questions
What is a good dividend yield?
A dividend yield between 3% and 6% may look attractive for some investments, but the right level depends on risk, market conditions, and whether the dividend can be maintained.
How much dividend income can I earn?
Dividend income depends on your portfolio size, dividend yield, taxes, fees, and whether dividends are reinvested.
Should I reinvest dividends?
Reinvesting dividends may help a portfolio grow through compounding, but taking the income may be more useful if you need regular cash.
Are dividends taxable?
In many countries, dividends may be taxed. The rate depends on the country, account type, investment, and individual tax situation.
How much money do I need to earn 1,000 per month in dividends?
The required investment depends on the dividend yield and tax rate. Enter 1,000 as your monthly living expenses to compare that target with the estimated after-tax dividend income.
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