Dividend Income Calculator

Dividend investors live on two numbers: the income a portfolio pays today, and what that income becomes after years of dividend growth and reinvestment. Model both here - including the snowball effect of reinvested dividends buying more shares.

Your portfolio

$
%
%
yrs
Dividend income today — per year
 ↳ per month—
Income in final year—
 ↳ per month—
Total dividends collected—
Portfolio value at the end—

Results update as you type and are estimates for education only — they don't account for taxes, fees or your personal situation, and nothing here is financial advice. Your inputs stay on this device.

How it works

  1. Enter portfolio value, current dividend yield, and expected annual dividend growth.
  2. Optionally add monthly contributions and toggle dividend reinvestment (DRIP).
  3. Each year: dividends = portfolio x yield; reinvested dividends and contributions grow the portfolio; the dividend per share grows at your growth rate.
  4. See income today vs the projected annual and monthly income at the end of the period.

The formula

Yearly: income = value x yield; value(next) = value + contributions + (income if reinvested) + value x price growth. Yield income compounds because reinvestment adds shares while the payout per share also grows.

Frequently asked questions

What's a realistic dividend yield?
Broad dividend ETFs typically yield 2-4%; higher yields usually signal higher risk or limited growth. Chasing 8%+ yields often ends with dividend cuts - the calculator's growth input matters as much as the starting yield.
What is DRIP and why does it matter?
A Dividend Reinvestment Plan automatically uses payouts to buy more shares. Those shares pay their own dividends, creating a compounding loop - over 15-20 years reinvestment typically accounts for a large share of total income growth, which you can see by toggling it here.
Are dividends taxed?
In most countries yes - and the treatment differs widely (qualified rates in the US, withholding taxes across Europe, tax-sheltered accounts in both). Figures here are pre-tax; a tax-advantaged account (401k/IRA/ISA/PEA and similar) can defer or remove the drag.
Is dividend investing better than growth investing?
Neither is universally better - total return is what compounds. Dividend strategies suit people who value visible income and lower volatility; growth strategies often win on raw return. Many portfolios blend both.
Keep planning

Related calculators

Compound Interest Calculator

See how your savings snowball with monthly contributions and compounding.

Open calculator

Investment Return Calculator

Turn any buy-and-sell result into total ROI and honest annualized CAGR.

Open calculator

SIP Calculator

Project the future value of a monthly systematic investment plan.

Open calculator