Dividend Calculator

It projects the passive income your investments could pay over time. You enter a starting amount, an expected dividend yield and growth rate, and the calculator shows how your annual (and monthly) dividend income compounds - especially if you reinvest the dividends (DRIP) instead of spending them.

DRIP means using each dividend payment to buy more shares instead of taking the cash. Those extra shares then pay their own dividends, so your income snowballs. Over decades DRIP dramatically increases both your portfolio value and your income - toggle it on and off in this tool to see the difference.

Yield on cost is your current annual dividend income divided by everything you originally invested (not the current value). Thanks to dividend growth and reinvestment, a position that started at a 4% yield can be paying 10%+ on your original cost after 20 years - which is why long-term dividend investors track it.

Usually, yes - unless they are inside a tax wrapper. In a UK ISA or a French PEA (after 5 years) dividends are tax-free; in a taxable account they are taxed (e.g. UK dividend rates 8.75%-39.35% above the £500 allowance). This projection is pre-tax; use our ISA and UK dividend tax calculators to see the after-tax figure.

The tool uses a constant yield and a constant annual growth rate for simplicity. Real dividends can be cut, and yields and growth vary by company and cycle. Treat the result as an illustration of the compounding mechanism, not a guarantee - and be conservative with the growth rate.

Yes. Alvest records your real dividends, projects your forward income and reinvestment, and shows your true yield on cost and passive-income progress across your whole portfolio. You can start free.