Dividend income calculator
See about how much your investments could pay you each month, or how much you would need invested to reach the income you want.
invested, at a 5.0% yield
Illustration only, using the yield you choose, before taxes. It is not a Firreo recommendation or a prediction. Real payouts change, yields are not promised, and investing can lose money.
How the math works
Yield is the share of an investment's value it pays out in a year. To turn it into a monthly number, multiply the amount invested by the yield and divide by 12.
Monthly income = amount invested × yield ÷ 12. For example, $100,000 at a 4% yield pays $4,000 a year, or ~$333 a month.
To work backward from a goal, multiply the monthly income you want by 12 and divide by the yield. Amount needed = monthly income × 12 ÷ yield. For $1,000 a month at 4%, that is $12,000 ÷ 0.04, or $300,000.
What different amounts could pay each month
| Invested | At 3% | At 5% | At 7% |
|---|---|---|---|
| $10,000 | $25 | $42 | $58 |
| $25,000 | $63 | $105 | $145 |
| $50,000 | $125 | $210 | $290 |
| $100,000 | $250 | $415 | $585 |
| $250,000 | $625 | $1,000 | $1,500 |
| $500,000 | $1,300 | $2,100 | $2,900 |
| $1M | $2,500 | $4,200 | $5,800 |
Rounded, per month, before taxes. Illustrations at fixed yields, not predictions.
How much you need invested for a monthly income
| Each month | At 3% | At 5% | At 7% |
|---|---|---|---|
| $100 | $40,000 | $24,000 | $17,000 |
| $500 | $200,000 | $120,000 | $86,000 |
| $1,000 | $400,000 | $240,000 | $171,000 |
| $2,000 | $800,000 | $480,000 | $343,000 |
| $3,000 | $1.2M | $720,000 | $514,000 |
| $5,000 | $2M | $1.2M | $857,000 |
Rounded, before taxes. Illustrations at fixed yields, not predictions.
What yield should you use?
Different kinds of investments pay very different amounts. Rough ranges in recent years:
- Broad stock market index funds: ~1 to 2%. They are built mostly to grow in value, not to pay you.
- Dividend funds: ~2 to 4%, from companies that share profits and tend to raise payouts over time.
- Real estate funds (REITs): ~3 to 5%, from rent on buildings you never have to manage.
- Higher yield income funds: 6% or more. The bigger payouts come with more risk.
- Treasury and money market funds: these move with interest rates.
A higher yield is not automatically better. Very high yields can mean a payout is at risk of being cut, or that the price of the investment has fallen. Spreading money across several types is one way to keep income from depending on one bet. Learn more in What Are Dividends and How Do They Work? and Qualified vs Ordinary Dividends.
What this calculator leaves out
- Taxes. Results are before taxes. See How Investments Are Taxed.
- Changing payouts. Companies and funds raise, lower and sometimes stop payouts.
- Price changes. The value of what you own moves up and down, which this does not show.
- Adding money over time. Investing a little every month, and putting payouts back to work, is how most people actually get there. See Why Starting to Invest Early Matters.
How much would it take to cover your bills?
~Invested needed at a 5% yield. Tap one for the full breakdown.
Questions people ask
How much does $100,000 pay a month in dividends?
It depends on the yield. $100,000 could pay ~$250 a month at a 3% yield, ~$415 at 5% and ~$585 at 7%. These are before taxes, and real payouts change from month to month.
How much do I need invested to make $1,000 a month?
Multiply $1,000 by 12 and divide by the yield. That is ~$400,000 at a 3% yield, ~$240,000 at 5% and ~$171,000 at 7%. A higher yield needs less money but usually comes with more risk.
What yield should I use in the calculator?
Use a yield that matches what you own or plan to own. Broad stock index funds tend to pay about 1 to 2%, dividend funds about 2 to 4%, real estate funds about 3 to 5%, and higher yield income funds 6% or more. Treasury and money market rates move with interest rates. A blend of several types usually lands somewhere in the middle.
Is dividend income taxed?
Usually, yes, unless it is earned inside a retirement account like an IRA or 401(k). Many stock dividends are taxed at lower rates than wages, while interest and some fund payouts are taxed like regular income. This calculator shows amounts before taxes.
Will I get the same amount every month?
No. Many funds pay quarterly, some pay monthly, and payout amounts change over time. The monthly figure here is the yearly total spread evenly across 12 months, which is the easiest way to compare it to your bills.
This calculator is for education only and is not personalized investment advice. Figures are hypothetical illustrations at the yields shown, before taxes and fees. They are not a prediction or a promise of results. All investing involves risk, including the possible loss of principal.