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Dividend Calculator

See how much dividend income your money could pay you: with reinvesting (DRIP), monthly top-ups, dividend growth and the 2026/27 UK dividend tax. Free, no sign-up.

Your numbers

UK 2026/27: the first £500 of dividends a year is tax-free. Rates from April 2026.
Portfolio at the end
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Income in the last year
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That's per month
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You put in
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How it grows

Portfolio valueMoney put inYearly dividends (after tax)
YearPut inDividends (after tax)TaxPortfolioYield on cost

Income goal: how much do I need?

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Before tax. Inside an ISA there is no dividend tax.

Dividend questions

How much is dividend tax in 2026/27?

The first £500 of dividends each tax year is tax-free. Above that, it's 10.75% for basic-rate taxpayers, 35.75% for higher-rate and 39.35% for additional-rate (up 2 points for basic and higher rate from April 2026). Dividends inside an ISA or a pension are tax-free.

What is DRIP?

A dividend reinvestment plan uses each dividend to buy more shares instead of paying it out. Next time you're paid on more shares, so the income snowballs. Switch between "Reinvest" and "Take as cash" above to see the difference.

What's a good dividend yield?

The UK market as a whole has often yielded around 3% to 4%. Very high yields can be a warning sign that the market expects the dividend to be cut. A lower yield that grows every year can pay more in the long run.

What is yield on cost?

Your yearly dividends divided by the money you put in. As dividends grow, yield on cost rises even though the share's own yield may not change.