Dividend Income Calculator
Estimate potential dividend income from an investment, and see the effect of reinvesting versus taking dividends as cash.
Not guaranteed — dividends can be reduced or suspended.
Leave at 0 unless you want to model a specific tax rate. Not tax advice.
- First-year income
- PKR 80,000
- Monthly equivalent
- PKR 6,667
- Total estimated dividends
- PKR 1,606,345
- Estimated final portfolio value
- PKR 2,606,345
Year-by-year breakdown
| Year | Dividend income (after tax) | Cumulative dividends | Portfolio value |
|---|---|---|---|
| 1 | PKR 80,000 | PKR 80,000 | PKR 1,080,000 |
| 2 | PKR 90,720 | PKR 170,720 | PKR 1,170,720 |
| 3 | PKR 103,258 | PKR 273,978 | PKR 1,273,978 |
| 4 | PKR 117,983 | PKR 391,961 | PKR 1,391,961 |
| 5 | PKR 135,355 | PKR 527,316 | PKR 1,527,316 |
| 6 | PKR 155,943 | PKR 683,258 | PKR 1,683,258 |
| 7 | PKR 180,458 | PKR 863,716 | PKR 1,863,716 |
| 8 | PKR 209,795 | PKR 1,073,511 | PKR 2,073,511 |
| 9 | PKR 245,082 | PKR 1,318,593 | PKR 2,318,593 |
| 10 | PKR 287,752 | PKR 1,606,345 | PKR 2,606,345 |
Educational information only
This calculator provides estimates for educational purposes only. Results are based on the assumptions you enter and are not guaranteed, not a forecast, and not personalized financial or investment advice. Actual investment returns vary and may be negative. Consider speaking with a licensed financial advisor before making investment decisions.
Assumptions & methodology
This calculator applies your expected dividend yield to the portfolio value at the start of each year to estimate that year's dividend income. The dividend yield itself grows by your specified annual growth rate each year. If reinvestment is enabled, after-tax dividend income is added back to the portfolio at year end, compounding future income.
Price appreciation of the underlying investment is not modeled — this tool isolates the dividend income component only. Taxes are excluded by default and only applied if you explicitly enter a tax rate.
Example use case
If you invest PKR 1,000,000 at an assumed 8% dividend yield with 5% annual dividend growth, this calculator shows your estimated first-year income, and how reinvesting that income compounds your total dividends received over 10 years compared to withdrawing it as cash.
Limitations
- Dividends are never guaranteed and can be reduced, suspended or eliminated at any time.
- Does not model share price appreciation or depreciation — dividend income only.
- Assumes a constant, steadily growing yield, which real dividend-paying investments rarely provide.
- Tax rates change and vary by investor status — confirm current rates with the FBR or a tax advisor.