Monthly Dividend Income Calculator

Enter your target monthly income and expected dividend yield to find out exactly how much capital you need — with projections across three growth scenarios.

How the calculator works

The core formula is straightforward: Capital needed = (Annual target income) ÷ Dividend yield. The projection table then shows how your income grows year-over-year if you invest that capital and the companies consistently raise their dividend at your chosen growth rate. Results assume a constant yield on cost and do not account for taxes or inflation.

Frequently Asked Questions

How much do I need to invest to get €1,000 per month in dividends?
At a 4% dividend yield you would need €300,000 invested. At 3% yield you would need €400,000. The calculator above computes this instantly — just enter your target and yield to see the exact number.
What dividend yield is realistic for a passive income portfolio?
A diversified dividend portfolio typically yields 3–5%. Yields above 6–7% can signal elevated dividend-cut risk. Balancing yield with safety is more important than chasing the highest number.
Does dividend growth reduce the capital needed over time?
Yes. If your companies grow their dividend at 7% per year, income doubles roughly every 10 years without adding fresh capital. This is why dividend growth investors often need less capital than pure high-yield investors.
Should I prioritise high yield or high dividend growth?
It depends on your time horizon. High growth (5–10% per year) with a moderate starting yield (2–3%) beats high yield with zero growth after roughly 12–15 years. Use the calculator's growth rate input to compare both scenarios.
How does inflation affect dividend income over 20 years?
At 2.5% inflation, your purchasing power halves in roughly 28 years. Dividend growth stocks that raise payouts 5–8% annually can outpace inflation significantly, preserving real income.
What is the difference between living off dividends and the 4% withdrawal rule?
The 4% rule withdraws both capital and returns. Living off dividends leaves the principal intact and relies only on dividend cashflow — generally more conservative and sustainable over very long horizons.