Name your monthly income target and see the portfolio size it takes — then check whether your current savings plan actually gets you there. Free, no signup.
Short answer
Capital required = (monthly goal × 12) ÷ yield. Want $1,000/month at a 4% yield? That is $12,000/year ÷ 0.04 = $300,000. Enter your numbers below for your exact figure plus a savings-plan check.
A dividend portfolio paying a steady yield turns capital into income by multiplication: income = capital × yield. Flip it around and any income target implies a capital requirement: capital = income ÷ yield. The second half of the calculator grows your savings with annual compounding (contributions added once per year) and compares the projection with the requirement.
The honest use of this tool is sensitivity testing: run it at 3%, 4%, and 5% yields and watch the required capital move. If your plan only works at an unsustainable yield, the plan — not the math — needs to change: save more, allow more years, or trim the target.
Divide the annual income you want by the portfolio yield. $1,000 a month is $12,000 a year; at a 4% yield that means $12,000 ÷ 0.04 = $300,000 of dividend-paying investments. A higher yield lowers the capital needed but usually means higher risk — use the calculator above with a yield you can defend, not the highest you can find.
Use a yield your planned portfolio can plausibly sustain — many planners use 3–5% for a diversified dividend portfolio. Yields above 7–8% often signal distress or special situations. The calculator lets you compare assumptions side by side so you can see how sensitive your goal is to the yield.
No — the capital figure is pre-tax. Qualified dividends are taxed at 0%, 15%, or 20% federally (plus possible state tax and the 3.8% net investment income tax at high incomes), so in a taxable account you need more capital than the headline number. In a Roth IRA qualified withdrawals are tax-free. See our dividend tax calculators for the after-tax picture.
Monthly contributions shorten the path dramatically because of compounding: each contribution starts earning returns immediately. Enter your current savings, monthly addition, expected return, and years above — the calculator compares your projected capital against the required capital and shows the shortfall, if any.
No. This is an educational planning tool based on arithmetic, not a recommendation to buy any security or to target any yield. Expected returns and yields are assumptions you supply — markets can deliver less, or losses. Consider speaking with a qualified financial professional about your situation.
Put this calculator on your own site. The attribution link underneath keeps it free for everyone.
<iframe src="https://dividendengines.com/calculators/dividend-income-goal" width="100%" height="900" style="border:1px solid #e2e8f0;border-radius:8px" title="Dividend Income Goal Calculator" loading="lazy"></iframe> <p style="font-size:12px">Calculator by <a href="https://dividendengines.com/calculators/dividend-income-goal">Dividend Engines</a> — free dividend tools, no signup.</p>
Educational tool only — not financial advice. Figures are projections from your assumptions, not predictions.
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