Dividend Income Goal Calculator
Estimate the capital needed for a monthly or annual after-tax dividend income target.
What would your income goal take?
Capital needed at the selected yield and flat tax rate, before fees.
$12,000 ÷ (0.04 × 1) = $300,000
- Required annual gross income
- $12,000
- Estimated annual dividend tax
- $0
- Annual after-tax income target
- $12,000
This estimates a capital target today. It does not estimate time to reach the goal or assume that a dividend yield will stay constant.
Turn income into a capital target
Divide the annual income you want by the assumed dividend yield. If your goal is after tax, reduce the yield by the tax rate first.
For $1,000 a month at a 4% yield with no tax: $12,000 ÷ 0.04 = $300,000. With a 20% flat dividend tax rate, required gross income is $15,000 a year and required capital is $375,000.
What this target leaves out
This is a snapshot of required capital, not a forecast of the time needed to accumulate it. It does not model fees, capital-gains tax, changes to distributions, or account-specific rules.
Model recurring contributions and reinvestment →