Investing

Dividend income and reinvestment calculator

Estimate dividend income, reinvestment growth and capital needed for an income target. Enter yield, dividend growth, price growth and dividend tax.

Content updated 2026-09-07. Assumptions reviewed 2026-09-07.

Your inputs

Showing the example. Edit your inputs, then calculate.

Projected wealth

10,407.42 USD

Dividend illustration using your yield, growth, tax and reinvestment assumptions.

Required Principal: 300,000
Balance: 10,407.42
Cash Dividends: 0
Total Dividends: 407.42
Taxes: 0
Contributions: 0
Projected Monthly Income: 34.69

Illustrative result from your inputs and the dated assumptions shown; not a forecast, recommendation or offer

KlarFort is not financial, investment, tax, or legal advice. Verify outputs before making material decisions. Read the disclaimer.

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Personal and commercial use is free with credit to KlarFort. See usage and credit.

About this calculator

Project an investment that pays dividends and compare keeping those payments as cash with reinvesting them. DRIP means dividend reinvestment plan, modeled here as buying fractional shares with net dividends.

Income-target mode estimates the capital needed to support an entered monthly dividend income at the starting yield and tax rate. The projection separately allows dividend-per-share and share-price growth.

How to use this calculator

Choose a growth projection or an income-target calculation and select the currency.
Enter the starting investment, projection months, monthly contribution and any monthly income target.
Set the initial annual dividend yield, dividend growth, price growth and dividend tax rate.
Choose whether to reinvest dividends, then calculate and compare invested value, retained cash and projected income.

Understand your result

Projection value includes both the investment balance and cash dividends retained without interest. Reinvesting uses dividends after the entered tax to buy additional shares at each month's ending price.

Required capital uses the initial after-tax yield and excludes future growth. Projected monthly income reflects the shares and dividend-per-share level reached at the end of the projection.

Questions about this calculator

Does a higher share price automatically raise dividends?

No. Share-price growth and dividend-per-share growth are independent inputs. The starting yield establishes the initial payout, then the dividend growth input changes that payout over time.

What happens when dividends are not reinvested?

Net dividends accumulate as cash without earning interest. They remain part of total projected wealth, but they do not buy more shares or increase later dividend income.

Why can the income target show an unavailable result?

A positive target requires a positive after-tax starting yield. A zero yield or a 100% dividend tax cannot fund positive income in this model, so no finite capital amount is returned.

Where do my figures go?

Your page calculations run in this browser. The API and connected assistants send the inputs supplied to them to our Cloudflare Worker. See Privacy.

How can I reproduce this result?

Use the same inputs and assumptions shown here. Simulation seeds reproduce the same paths. Read the calculation documentation.

Your calculation table

Month	Balance	Net Dividend
1	10,033.33	33.33
2	10,066.78	33.44
3	10,100.33	33.56
4	10,134	33.67
5	10,167.78	33.78
6	10,201.67	33.89
7	10,235.68	34.01
8	10,269.8	34.12
9	10,304.03	34.23
10	10,338.38	34.35
11	10,372.84	34.46
12	10,407.42	34.58

Citable worked example

Dividend income and reinvestment calculator: fixed public worked-example outputs using the calculator’s published default inputs. Estimate dividend income, reinvestment growth and capital needed for an income target. Enter yield, dividend growth, price growth and dividend tax. These illustrative figures are independent of visitor inputs and live market feeds. The table contains 12 rows and is available as CSV and JSON. Formula and assumptions reviewed 2026-09-07.

These are fixed public examples. Your calculation above does not change this table.

Month	Balance	Net Dividend
1	10,033.33	33.33
2	10,066.78	33.44
3	10,100.33	33.56
4	10,134	33.67
5	10,167.78	33.78
6	10,201.67	33.89
7	10,235.68	34.01
8	10,269.8	34.12
9	10,304.03	34.23
10	10,338.38	34.35
11	10,372.84	34.46
12	10,407.42	34.58

Download example CSV Download example JSON

Computed with KlarFort Calculators, https://klarfort.com/

Calculator reference: https://klarfort.com/tools/dividend-calculator/. Usage and credit.

Formula and assumptions

Income-target capital = monthly income × 12 / (dividend yield × (1 − tax)). Monthly dividends = shares × dividend per share; reinvestment buys shares at the ending monthly price.

The initial modeled share price is one currency unit. Beginning-month contributions buy shares; monthly dividends are paid on those shares; price growth occurs before reinvestment. Yield and price growth are independent entered assumptions.
Dividend per share grows monthly at the entered effective annual rate. Cash dividends accumulate without interest; projected total wealth includes investments and retained cash. Income-target capital uses the initial yield, without assuming future growth.

Assumptions reviewed: 2026-09-07