This dividend calculator is a free online tool to estimate future dividend income. Below is all you need to know about the calculator.
About This Calculator
***For the best user experience use this calculator form your laptop/desktop computer.***
***If this calculator does not load or work correctly the problem could be that you don’t have Microsoft Office installed.***
Thank you for using my dividend calculator. This calculator, built on Microsoft Excel is designed to give the user an estimate of how much an investment in a publicly traded company or ETF could be worth in the future and an estimate of how much someone could earn each year in dividend income. We have a calculator for quarterly dividend paying companies and a calculator for monthly dividend paying companies. By default you always start on the quarterly dividend calculator. The estimates are based on six inputs provided by the user. Those inputs are:
- Initial Shares Purchased: Enter in the number of shares you already own. If you don’t own any shares leave this field blank
- Initial Investment Amount: Enter in the total price you paid for the initial shares purchased. If you don’t own any shares leave this field blank
- Monthly Investment: This is how much money you will invest each month
- The average dividend yield: This input is calculated by the user. The link below will take you to my instructional video on YouTube that will show you how to calculate the average dividend yield
- The current annual dividend per share: There are many websites that will show you the annual dividend per share. One such website is Yahoo Finance. The link below will take you to my instructional video on YouTube that will show you how I find the annual dividend per share
- The Compound Annual Growth Rate (CAGR) of the dividend: I look this up on SeekingAlpha.com. I always use the 10 year CAGR but you don’t have to. You can use the 3 year, 5 year or any length of time you want.
As you fill in the green input fields on either the quarterly or monthly dividend calculator you will see numbers begin to populate. Remember, the numbers are estimates only. The “Snap Shot” section will show you your total invested amount (that is just your monthly investment amount, reinvested dividends are not included in that number), total shares, portfolio value, annual dividend income and yield on cost. The snap section is fed from the left side of the calculator where you will see a year by year and month by month numbers showing you how your investment could be doing in the future. Please note that this calculator (quarterly and monthly) automatically reinvests the dividends. That cannot be turned off.
To delete anything in the green input section you have to double click in the cell until you see the cursor and then delete. Another option to start over is to refresh this page. A refresh will delete everything you inputted into the calculator allowing you to start over.
Here is a video that will walk you through the calculator including an explanation of the formulas.