Dividend income calculator
Turn a portfolio size and dividend yield into monthly and yearly income, or work backward from the income you want to the portfolio you need.
Yearly dividend income
That is about $292 a month. To earn $2,000 a month at 3.5%, you would need $685,714.
Bars show the portfolio needed for your monthly target at different yields. Dividends are not guaranteed and are usually taxed.
How this calculator works
Dividend income is your portfolio value times its dividend yield. The calculator also works backward: divide the yearly income you want by the yield to see the portfolio you need.
Yields vary widely. Broad index funds pay little; dividend-focused funds and individual stocks pay more but usually grow more slowly.
Yearly income = portfolio × yield. Portfolio needed = (monthly target × 12) ÷ yieldCommon questions
Is a higher yield always better?
No. A very high yield can mean the price has fallen on bad news, and the dividend may be cut.
Are dividends taxed?
In the US, qualified dividends are taxed at 0%, 15% or 20%; others as ordinary income. Inside an IRA or 401(k), no tax is due until withdrawal (or ever, in a Roth).
Do dividends grow?
Many companies raise dividends over time. Use the DRIP calculator to see the effect of reinvesting them.
FatDCA calculators are educational estimates, not investment, tax or legal advice. Results depend on the assumptions you enter, and past returns do not predict future returns.
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