See how much dividend income your money could pay each year and month, and how it grows with or without reinvestment.
Estimate only. Dividends are not guaranteed and can be cut. Figures are before tax.
How Much Dividends Will I Get From $100k?
Multiply the amount by the yield. $100,000 at a 4% dividend yield pays about $4,000 a year, or $333 a month, before tax. On $10k the same 4% pays $400 a year.
| Yield | Yearly on $100k | Monthly on $100k | Needed for $1,000/month |
|---|---|---|---|
| 3% | $3,000 | $250 | $400,000 |
| 4% | $4,000 | $333 | $300,000 |
| 5% | $5,000 | $417 | $240,000 |
That last column answers how much you need to invest to make $1000 a month in dividends: $12,000 a year divided by the yield.
How to Calculate Dividend Income Over Time
Each year's dividend is the balance times that year's yield, and the yearly amounts are added up.
Formula: Annual Dividend (in a given year) = Balance × Yield for that year, where Yield grows each year by the dividend growth rate: Yield in Year N = Initial Yield × (1 + Dividend Growth Rate)^N. When dividends are reinvested, each year's dividend is added back to the balance before the next year's dividend is calculated, so the balance compounds; when they're not reinvested, the balance stays at the original investment amount. Total Dividends is the sum of every year's dividend, and Yield on Cost is the final year's dividend divided by the original investment.
- Year 1: $10,000 × 5% = $500, reinvested to make $10,500.
- Year 2: $10,500 × 5% = $525, making $11,025.
- Year 3: $11,025 × 5% = $551.25.
- Add them up: $500 + $525 + $551.25 = $1,576 in total dividends.
- Investment amount: the amount of money currently invested in the dividend-paying asset
- Dividend yield: the annual dividend as a percentage of the investment amount, in year one
- Years held: how many years you plan to hold the investment
- Dividend growth per year (optional): the rate at which the dividend payout itself is expected to increase each year
- Reinvest dividends (DRIP): whether each dividend payment is added back to the balance so future dividends are calculated on a larger amount
Example Scenarios
| Investment | Yield | Years Held | Reinvest? | Total Dividends |
|---|---|---|---|---|
| $10,000 | 5% | 3 | Yes | $1,576 |
| $20,000 | 4% | 2 | No | $1,600 |
| $5,000 | 6% | 1 | Yes | $300 |
| $15,000 | 3% | 5 | No | $2,250 |
| $8,000 | 5% | 4 | Yes | $1,724 |
Using It as a Dividend Calculator with DRIP
Reinvesting adds a steadily bigger amount each year. With no dividend growth, $100,000 at 4% for 10 years pays $40,000 in total if you take the cash, but about $48,024 with DRIP on, and the final year's dividend reaches about $5,693.
- Trailing yield uses dividends paid over the past year; forward yield uses announced or expected payments.
- A very high yield often reflects a falling share price, which can be a sign the market expects the payout to be cut.
- Dividend growth is an assumption. Enter a conservative rate, then try a lower one to see the range of outcomes.
The projection assumes a steady share price and yield. Real prices move, so reinvested dividends buy more shares in some years and fewer in others. Withholding and income tax reduce what you keep, so treat the result as pre-tax; rules vary by country. The dividend yield article on Wikipedia explains how yield is measured.
Common questions about dividend income
How much dividends will I get from $100k?
Multiply by the yield. At 3% you get about $3,000 a year, at 4% about $4,000 ($333 a month) and at 5% about $5,000, all before tax.How much do I need to invest to make $1000 a month in dividends?
$1,000 a month is $12,000 a year, so divide that by the yield. At 4% you need about $300,000; at 3% it's $400,000 and at 5% it's $240,000, before tax.What does "reinvest dividends" (DRIP) actually change in the calculation?
Turning DRIP on adds each dividend back to your balance before the next year's dividend is calculated, so later dividends are paid on a larger amount and your balance compounds. With DRIP off, the balance stays at the original investment and each dividend is paid out.What's the difference between dividend yield and yield on cost?
Dividend yield is the current year's dividend as a percentage of the investment amount today. Yield on cost is the dividend in a future year measured against your original investment, so it rises over time if the dividend grows or is reinvested.Are the dividend figures shown before or after tax?
Before tax. Dividend income is often taxed, and rates vary by country, account type and income level, so subtract your applicable tax rate separately to estimate what you'll keep.Does this calculator account for dividend cuts or suspensions?
No. It assumes the dividend continues and grows at the rate you specify. Dividends are not guaranteed and companies can reduce or suspend them, so treat the projection as an estimate under stable conditions.Related Calculators
To see how dividend reinvestment compares with other forms of compounding, try the compound interest calculator or the broader investment calculator. If you'd rather measure an investment's overall annual growth rate rather than its dividend stream, the CAGR calculator is a useful companion.