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Dividend Income Target Calculator

Work out dividend income target instantly with clear inputs, formula shown and shareable results.

About Dividend Income Target Calculator

The capital needed is the target income divided by the portfolio yield. Dividend growth then lifts income on the same capital, so yield on cost rises over time even though the market yield stays roughly constant.

Formula

Income target

Capital = income / yield; income in t years = income × (1+g)^t

Worked example

With the default values below, Dividend Income Target Calculator returns Capital Required Today of $17,142,857. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Dividend Income Wantedminimum 0
600,000
Portfolio Dividend Yieldaccepts 0.1–20 %
3.5 %
Annual Dividend Growthaccepts 0–25 %
6 %

Results

Capital Required Today
$17,142,857
Income After Ten Years Of Growth
$1,074,508.62
Yield On Original Cost In Ten Years
6.268%
Monthly Income At The Target
$50,000.00

Step by step

  1. 1Values used
  2. 2Income target
  3. 3Capital Required Today= 17,142,857
  4. 4Income After Ten Years Of Growth= 1,074,508.62
  5. 5Yield On Original Cost In Ten Years= 6.268
  6. 6Monthly Income At The Target= 50,000.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is chasing a high yield sensible?

Not on its own. Very high yields often signal a dividend at risk; total return and dividend durability matter more.

Why does yield on cost matter?

It shows how a growing dividend turns a modest starting yield into a substantial income on the money originally invested.

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