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Dividend Calculator
Estimate future dividend income, holdings and cash payouts with or without reinvestment. See how new purchases affect forward yield on cost.
Of those dividends, $81,844.32 was reinvested and $0.00 was paid as cash. Holdings plus cash payouts: $249,481.63. Modeled purchase basis: $166,844.32.
Cash payouts are held without interest. The monthly income is an annual average, not a payment schedule. All results are before taxes and fees.
| Year | Dividends that year | Holdings | Forward yield on cost |
|---|---|---|---|
| 1 | $875.00 | $29,875.00 | 3.7% |
| 2 | $1,055.68 | $35,125.68 | 3.8% |
| 3 | $1,253.15 | $40,783.86 | 4.0% |
| 4 | $1,469.01 | $46,884.22 | 4.1% |
| 5 | $1,704.98 | $53,464.57 | 4.2% |
| 6 | $1,962.97 | $60,566.12 | 4.4% |
| 7 | $2,245.09 | $68,233.86 | 4.5% |
| 8 | $2,553.64 | $76,516.85 | 4.7% |
| 9 | $2,891.16 | $85,468.69 | 4.8% |
| 10 | $3,260.46 | $95,147.90 | 4.9% |
| 11 | $3,664.60 | $105,618.42 | 5.1% |
| 12 | $4,106.99 | $116,950.14 | 5.2% |
| 13 | $4,591.35 | $129,219.49 | 5.4% |
| 14 | $5,121.81 | $142,510.08 | 5.5% |
| 15 | $5,702.92 | $156,913.40 | 5.6% |
| 16 | $6,339.68 | $172,529.62 | 5.8% |
| 17 | $7,037.64 | $189,468.45 | 5.9% |
| 18 | $7,802.90 | $207,850.09 | 6.1% |
| 19 | $8,642.22 | $227,806.32 | 6.2% |
| 20 | $9,563.06 | $249,481.63 | 6.3% |
How the dividend calculator works
dividends(year) = opening shares × dividend per share new shares = (contribution + reinvested dividends) ÷ year-end price next-year dividends = ending shares × next-year dividend per share forward yield on cost = next-year dividends ÷ total share purchase cost
The model starts with a notional $100 share price and calculates shares from your investment. Each year pays dividends on the opening shares, changes the price, then buys fractional shares using your contribution and any reinvested dividends. New shares earn dividends starting in the following year. Dividend-per-share growth takes effect for that following year.
Purchase basis includes your starting investment, later cash contributions and reinvested dividends. Actual adjusted tax basis may differ because of fees, return of capital and other adjustments. Rates stay constant, no shares are sold, and price growth excludes dividends. Zero years shows the starting holdings and income rate, with no dividends yet paid.
Frequently asked questions
How is dividend income calculated?
Annual dividends = portfolio value × current dividend yield. With reinvestment, each year's dividends buy more shares, so next year's dividends grow with both the dividend rate and the larger holding.
What is yield on cost?
Here, forward yield on cost is the projected next-year dividend divided by all modeled share purchases, including reinvested dividends. It differs from current yield, which divides income by current market value. The purchase basis can rise as you buy shares; this is not a tax-basis record.
What does DRIP mean?
A dividend reinvestment plan uses dividends to buy shares. This model buys fractional shares at each year-end price. Turn reinvestment off to show the cash payouts separately; holdings plus cash includes that money without assuming it earns interest.
Are dividends taxed?
In a taxable account, dividends may be taxable even when reinvested. Qualified dividends can receive different rates from other ordinary dividends. These results exclude taxes and fees; retirement-account treatment depends on the account and distribution rules.
Are the default growth rates forecasts?
No. The defaults are illustrative constant rates. Dividend growth changes dividends per share; price growth changes the share price and must exclude dividends to avoid double counting. Negative dividend growth models repeated cuts, and −100% eliminates dividends after the first modeled year.
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Sources and updates
Methods and figures reviewed on . Provider rates and terms can change; check the linked source and your own account terms.
- Investor.gov (SEC), dividend reinvestment plans
- Investor.gov (SEC), understanding cost basis
- IRS Topic 404, Dividends (qualified vs ordinary)
- IRS, tax treatment of reinvested dividends
This calculator gives estimates for information only and is not tax, legal or financial advice. Actual outcomes depend on the assumptions, timing, taxes, fees and terms that apply to you. See how we calculate.