Dividend Calculator

How this is calculated

Your money buys units at a price that grows each month at the equivalent of your share price growth rate. Dividends are paid per unit, starting from your dividend yield and rising once a year by your dividend growth rate. Each dividend date, the cash paid is your units multiplied by that period's dividend per unit. If you reinvest, it buys more units at the current price. Fees reduce your holding a little each month. Contributions rise once a year by the percentage you set, and with a withdrawal the balance stops at zero instead of going negative.

When franking credits are switched on, the credit for each dividend is cash × franking level × 30 ÷ 70. Tax is then (cash + credit) × your tax rate − credit, which can be negative when you receive a refund. After-tax dividends are the cash received minus that tax. Inflation, when switched on, divides each future amount by (1 + inflation)^years.

Tax is shown for information and is assumed to be paid from outside the portfolio, so it does not reduce the balance. Yield on cost is the final year's dividends divided by total deposited.

About dividends and franking credits

What is a dividend?

A dividend is a share of a company's profit paid to its shareholders, usually in cash. Many Australian companies pay twice a year, an interim dividend and a final dividend, while some funds and ETFs pay quarterly or monthly.

How is dividend yield calculated?

Dividend yield is the annual dividend per share divided by the share price. For example, a $100,000 portfolio yielding 4% pays about $4,000 a year in dividends. The yield moves when the share price moves, so a falling price lifts the yield and a rising price lowers it.

What are franking credits?

Franking credits, also called imputation credits, represent tax a company has already paid on its profits. They are passed to you with the dividend. You add the credit to your taxable income, then it offsets the tax you owe. If your tax rate is below the company rate the extra is refunded, and if it is higher you pay the difference. A fully franked dividend of $70 carries a $30 credit when the company tax rate is 30%. Some companies pay 25%, which gives a smaller credit, so this calculator is an estimate.

What is dividend reinvestment (DRP)?

With a dividend reinvestment plan each dividend buys more units instead of being paid out. Those extra units pay their own dividends next time, which is how dividend income compounds. Turn reinvestment off to see the income you would receive as cash.

What is the difference between dividend growth and share price growth?

Total return comes from dividends plus changes in the share price. This calculator lets you set them separately, because a company can grow its dividend faster or slower than its share price.

What is yield on cost?

Yield on cost is your annual dividend income divided by the amount you have put in. When dividends grow, it keeps rising even though the yield on the current market value may stay the same.

How do fees and inflation affect dividend income?

Fund and platform fees reduce your holding every year, and inflation reduces what each dollar can buy. Use the fee field and the "today's money" option to see results after both.

What do the low, expected and high scenarios mean?

Returns are never fixed. The growth variance setting shows what your portfolio could look like if share prices grow slower or faster than your estimate, so you can plan for a range instead of one number.

Also try our Compound Interest Calculator to see how your money grows over time.

This website is designed to help you quickly and easily estimate dividend income and portfolio growth with reinvestment, dividend growth, franking credits, fees and inflation. Estimates only. Dividends are not guaranteed and can be cut or stopped, and real investments rise and fall. Tax is simplified and ignores the Medicare levy and capital gains tax. This is general information, not financial advice.