Dividend Calculator

Work out your dividend income now and in future, with dividend growth, share price growth and dividend reinvestment (DRIP). Shows yield on cost and a yearly table.

Reviewed by Dany, RightSums team · Updated

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personal-finance · Daily life · UK & US

Enter the amount you have invested or your number of shares and the share price, then the dividend yield or the yearly dividend per share. Choose how often it pays, from monthly to once a year, and add dividend growth, share price growth, the number of years and any extra monthly investment. Turn dividend reinvestment (DRIP) on to buy more shares with each payment, or off to take the cash. You get your dividend income now and in the final year, per month and per year, your yield on cost, total dividends, the value of your holding and a year-by-year table. An optional flat tax rate can be taken off each payment. It is an estimate: companies can cut dividends.

Accepted inputs

  • Country and currency (UK, US or Canada)
  • Amount invested, or number of shares
  • Share price
  • Dividend yield or yearly dividend per share
  • Payment frequency: monthly, quarterly, twice a year or yearly
  • Dividend growth and share price growth per year
  • Dividend reinvestment (DRIP) on or off
  • Number of years and extra monthly investment
  • Optional tax rate on dividends

Outputs

  • Yearly and monthly dividend income now
  • Yearly and monthly dividend income in the final year
  • Yield on cost
  • Total dividends and tax
  • Value of your holding and number of shares
  • Year-by-year table and chart
  • What DRIP, faster dividend growth or extra investment would change

How to use the Dividend Calculator

  1. Enter the amount you have invested or your number of shares, the share price and either the dividend yield or the yearly dividend per share.
  2. Choose how often the dividend is paid, then add dividend growth, share price growth, the number of years, any extra monthly investment and, if you like, a tax rate.
  3. The calculator pays each dividend on schedule, reinvests it at the share price if DRIP is on, raises the dividend once a year and grows the share price monthly.
  4. Read your income now and in the final year, your yield on cost and total dividends, then compare the table and the suggested changes.

Frequently asked questions

How do you calculate dividend income?

Multiply the value of your holding by the dividend yield, or your number of shares by the yearly dividend per share. $20,000 at a 3.5% yield pays $700 a year, or $175 a quarter. 100 shares paying £2 a share each year pay £200. Divide by 12 for a monthly figure.

How much do I need to invest to get £1,000 a month in dividends?

About £300,000 at a 4% dividend yield, because £12,000 a year divided by 0.04 is £300,000. At a 3% yield you would need £400,000, and at 5% you would need £240,000. Higher yields can mean more risk that the dividend is cut, so the calculator lets you test several rates.

How much difference does reinvesting dividends (DRIP) make?

A lot over time. $20,000 at a 3.5% yield paid quarterly, with dividends growing 6% a year and the price 5%, pays $4,332 in year 20 with DRIP and $2,118 without. The holding is worth $111,299 with DRIP against $78,816 including the cash taken. Turn DRIP on and off to compare.

What is yield on cost?

Yield on cost is the yearly dividend divided by what you paid, not today's price. In the DRIP example above, $4,332 of dividends in year 20 on $20,000 invested is a 21.66% yield on cost. It shows how dividend growth builds on your original money, but it says nothing about the yield a new buyer would get.

How are dividends taxed?

In the UK the first £500 of dividends each year is tax-free for 2026/27, with dividends from shares in an ISA not taxed. In the US, qualified dividends are taxed at 0%, 15% or 20% depending on taxable income. This calculator does not model tax rules; you can enter your own flat rate to take off each payment.

Sources

The rates and rules in this tool come from:

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