Try the DCA calculator

Live off dividends calculator

Find the portfolio size needed to cover your monthly bills with dividends alone.

Qualified US dividends are taxed at 0%, 15% or 20% depending on income.

Portfolio needed

$1,411,765

At a 4% yield and 15% tax, each $100,000 invested pays about $283 a month after tax.

$56,471Yearly dividends before tax
$48,000Yearly after tax
$1,200,000Needed under the 4% rule instead
At 2% yield$2.8M
At 3% yield$1.9M
At 4% yield$1.4M
At 5% yield$1.1M
At 6% yield$941k

How this calculator works

The calculator divides your yearly expenses by the after-tax dividend yield. The bars show how sensitive the answer is to the yield you assume.

It also shows the portfolio needed under the 4% rule, which spends a mix of dividends and selling shares.

FormulaPortfolio needed = (monthly expenses × 12) ÷ (yield × (1 − tax rate))

Common questions

Is living off dividends safer than the 4% rule?

Not necessarily. Dividends can be cut in recessions, and chasing high yields concentrates risk.

What yield is realistic?

Broad dividend funds have often yielded 3–4%; the overall S&P 500 much less.

Do I need to pay tax on dividends?

In a taxable US account, yes. In a Roth IRA, qualified withdrawals are tax-free.

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.

The Weekly Fat Stack · starts January 2027

One small deposit a week, for your brain

  • 1chart from real data
  • 1idea in plain English
  • 1thing to do this week
What's in it →

More in Grow

Compound interest calculatorThe classic, with a growth chart DCA calculatorMonthly buys, real prices since 1900 Stock profit calculatorBuy, sell, fees, profit Average cost calculatorYour average price per share Dividend income calculatorMonthly income from dividends When will I be a millionaire?The age you cross $1M