Passive income from dividends
Find out how much to invest to earn a monthly dividend income and calculate your portfolio's yield on cost.
How to useHow much to invest to live off dividends
Projection without inflation or taxes. Not investment advice.
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Passive income from dividends: what it is for
Enter your desired monthly income and the expected dividend yield. The calculator shows the capital needed, how much is missing, the estimated current income, the time to reach the goal with monthly contributions and the portfolio's yield on cost.
Educational tool: the calculations are estimates and not investment advice.
How to use
- Enter the desired monthly income and the yield.
- Enter capital and contributions.
- See the capital and the timeline.
When to use it
- Plan financial independence.
- Set a dividend goal.
- Track yield on cost.
Frequently asked questions
How do I calculate the capital needed?
Capital = (desired monthly income × 12) ÷ annual dividend yield. For $5,000 a month at an 8% yield, that is $750,000.
What is yield on cost?
It is the annual dividend received divided by the amount you invested (average price), not the current price. It shows your real return on cost.
Are dividends guaranteed?
No. Companies and funds can cut or suspend payouts. Consider taxes (rules vary by country) and diversify.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.