Dividend calculator: monthly and yearly income
How much income an amount pays at a given dividend yield: per month, quarter and year, after tax, and how it grows.
How much you need for a target income
Amount needed for a monthly dividend income at different yields, after the tax you entered. Highlighted: your yield.
| Yield | 500 a month | 1,000 a month | 2,000 a month | 5,000 a month |
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How dividend income is calculated
Dividend income is the amount invested multiplied by the dividend yield. €100,000 in a fund with a 3% yield pays €3,000 a year, €750 a quarter or €250 a month before tax. The yield is this year's dividends per share divided by the share price; it changes as the price moves and as companies raise or cut their payments, so the figure on a fund's fact sheet is a snapshot, not a promise.
The second number that matters is dividend growth. A yield of 3% that grows 5% a year pays 3.9% on your original money after five years and 4.9% after ten, with no reinvestment at all. Add reinvestment and the income grows faster still, because the new shares pay dividends too. The table shows both paths year by year; the DRIP calculator goes deeper into the reinvested version with the share count and yield on cost.
What yield to enter
Broad stock indices yield little: the S&P 500 (the 500 largest US companies) pays a little over 1%, a world index about 2%. Dividend-focused ETFs pay 3–4%, utilities and REITs 4–6%, and anything above 8% usually means the market expects a cut or the fund returns your own capital. For an income plan, the realistic range for a diversified portfolio is 2–4% with 3–6% growth. Enter the yield after the fund's own fee if the fact sheet shows it before.
Income versus total return
A high dividend is not extra return; it is part of the total return paid out in cash. A fund that pays 5% and grows 1% a year is not better than one that pays 1% and grows 7%; it is worse, before tax, and the gap compounds. Dividends are useful because they are income you do not have to decide to take, and because in a fall they keep arriving while prices are down. They are not a reason to concentrate a portfolio in a few high-yield names. Our stock-market lesson on returns explains the difference, and the safe withdrawal rate calculator shows how much a portfolio could pay out in total, dividends and sales together, without running dry.
Frequently asked questions
How do I calculate my dividend income?
Multiply the amount invested by the dividend yield: €50,000 at a 4% yield pays €2,000 a year. Divide by 12 for the monthly figure (€167) or by 4 for the quarterly payment (€500). Subtract your dividend tax rate for the net amount. The calculator above does this and adds dividend growth and reinvestment over the years.
How much do I need to invest to get $1,000 a month in dividends?
$12,000 a year divided by the yield: at 3% about $400,000, at 4% $300,000, at 6% $200,000, before tax. The higher the yield, the smaller the amount, but also the higher the risk that the dividend is cut. A diversified portfolio of dividend ETFs typically yields 3–4%.
How much does $100,000 pay in dividends?
At the S&P 500 yield of a little over 1%: about $1,200 a year. At a dividend ETF yield of 3.5%: $3,500 a year, or about $290 a month. At 6%: $6,000. Enter the amount and the yield above for your own case, including tax.
What is a good dividend yield?
For a diversified fund, 2–4% is normal and sustainable. A yield far above the market usually reflects a falling share price or a payout the company cannot maintain. Look at the dividend growth record and the payout ratio (the share of profits paid out) rather than the yield alone.
Are dividends paid monthly or quarterly?
Most US companies and ETFs pay quarterly; many European companies pay once a year; some funds pay monthly. The calculator lets you choose the schedule. The yearly income is the same; the schedule only changes when it arrives and, with reinvestment, how quickly it compounds.
Do I pay tax on dividends?
In most countries, yes, in the year they are paid, at a rate that depends on the country and your income. Tax-sheltered accounts can reduce or defer it. Enter your rate in the calculator; the income shown is after that tax.
From assumptions to real numbers, free
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Illustration only — not investment advice and not a forecast. Real returns vary from year to year and can be negative. Disclaimer.