Dividend Calculator
Project your dividend income and portfolio growth — from your investment, dividend yield, annual contributions and years, with or without reinvesting dividends.
Estimates only, based on the constant yield and contributions you enter. Real dividends, yields and share prices change and are not guaranteed. This is not investment advice.
How to calculate dividend income
Your annual dividend income is your investment multiplied by the dividend yield. A $10,000 holding at a 4% yield pays about $400 a year. This calculator projects that forward: each year it pays dividends, optionally adds your contribution, and — if you choose reinvestment (a DRIP) — buys more shares so next year’s dividends are larger.
annual dividend = investment × dividend yield · with DRIP, the balance compounds
For example, $10,000 at a 4% yield, fully reinvested for 10 years, grows to about $14,802 and pays roughly $4,802 in total dividends along the way — without adding a cent. Turn reinvestment off to see how much less it compounds when you take the cash.
How much to live off dividends?
Work backwards from the income you want: divide the annual amount by the yield. To earn $1,000 a month ($12,000 a year) at a 4% yield you need $12,000 ÷ 0.04 = $300,000 invested; at 3% you need $400,000. Regular contributions and reinvesting get you there faster — try different amounts and yields above. These are estimates with a constant yield, not investment advice.
Frequently asked questions
How do I calculate how much dividend I will get?
Multiply your investment by the dividend yield. A $10,000 holding at a 4% yield pays about $400 per year (roughly $33 per month) before any growth or reinvestment. Enter your numbers above to project it over several years.
What is a 4% dividend yield?
Dividend yield is the annual dividend divided by the price, shown as a percent. A 4% yield means you receive $4 a year for every $100 invested. Yield rises when the price falls and falls when it rises, so a very high yield can be a warning sign.
How much do I need invested to make $1,000 a month in dividends?
$1,000 a month is $12,000 a year. At a 4% yield you would need $12,000 ÷ 0.04 = $300,000 invested; at a 3% yield, $400,000. Use the calculator to see how regular contributions and reinvesting shorten the path.
Do dividends compound if you reinvest them?
Yes. Reinvesting dividends (a DRIP) buys more shares, which pay more dividends — so your income and value compound over time. Switch reinvestment to “No” above to compare with taking the cash instead.