{
  "slug": "dividend-income",
  "title": "Dividend Income Calculator",
  "heading": "Dividend Income Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/dividend-income",
  "summary": "Annual dividend income, yield on cost, and reinvested growth.",
  "description": "Yield on cost is the number that matters for long-term holders: a 3% yield today that grows 8% a year yields over 6% on your original money in a decade.",
  "formula": "Income = Shares × dividend per share; yield = Income ÷ Market value × 100.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=dividend-income",
  "inputs": [
    {
      "id": "invested",
      "label": "Amount invested",
      "kind": "number",
      "hint": null,
      "default": 50000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "yield",
      "label": "Current dividend yield",
      "kind": "number",
      "hint": null,
      "default": 3.4,
      "unit": "%",
      "min": 0,
      "max": 25
    },
    {
      "id": "growth",
      "label": "Annual dividend growth",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "years",
      "label": "Years held",
      "kind": "number",
      "hint": null,
      "default": 10,
      "unit": null,
      "min": 1,
      "max": 50
    },
    {
      "id": "reinvest",
      "label": "Reinvest dividends?",
      "kind": "select",
      "hint": null,
      "default": "yes",
      "options": [
        {
          "value": "yes",
          "label": "Yes (DRIP)"
        },
        {
          "value": "no",
          "label": "No, take the cash"
        }
      ]
    }
  ],
  "outputs": [
    {
      "id": "annualDiv",
      "label": "Annual dividend income at the end",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "monthly",
      "label": "Monthly income",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "yoc",
      "label": "Yield on original cost",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "value",
      "label": "Position value (dividends reinvested)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cash",
      "label": "Cash dividends collected",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "firstYear",
      "label": "First-year income",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Amount invested: 50000 $",
      "Current dividend yield: 3.4 %",
      "Annual dividend growth: 6 %",
      "Years held: 10",
      "Reinvest dividends?: Yes (DRIP)"
    ],
    "outputs": [
      "Annual dividend income at the end: $2,562.50",
      "Monthly income: $213.54",
      "Yield on original cost: 5.13%",
      "Position value (dividends reinvested): $71,101.58",
      "Cash dividends collected: $0.00",
      "First-year income: $1,700.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter amount invested ($).",
      "Enter current dividend yield (%).",
      "Enter annual dividend growth (%).",
      "Enter years held.",
      "Enter reinvest dividends?.",
      "Read your annual dividend income at the end on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "invested": 30000,
        "yield": 2.04,
        "growth": 3.5999999999999996,
        "years": 6,
        "reinvest": "yes"
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "invested": 50000,
        "yield": 3.4,
        "growth": 6,
        "years": 10,
        "reinvest": "yes"
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "invested": 80000,
        "yield": 5.44,
        "growth": 9.600000000000001,
        "years": 16,
        "reinvest": "yes"
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the dividend income calculator work?",
      "a": "Yield on cost is the number that matters for long-term holders: a 3% yield today that grows 8% a year yields over 6% on your original money in a decade. The underlying maths is: Income = Shares × dividend per share; yield = Income ÷ Market value × 100."
    },
    {
      "q": "What do I need to enter?",
      "a": "5 values: amount invested, current dividend yield, annual dividend growth, years held, and reinvest dividends?. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the annual dividend income at the end result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/dividend-reinvestment",
    "https://www.revenuelab.fyi/toolbox/portfolio-rebalance",
    "https://www.revenuelab.fyi/toolbox/stock-return"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Dividend Income Calculator (https://www.revenuelab.fyi/toolbox/dividend-income)"
}