Dividend Income Calculator

This calculator demonstrates the mathematical relationship between monthly savings amounts, investment timelines, and dividend income generation. It models how regular contributions combined with dividend reinvestment could theoretically accumulate to produce a target level of dividend income. The tool uses a binary search algorithm to determine the monthly savings amount that would be required to reach a specified dividend income target, accounting for factors including inflation adjustments, dividend yield assumptions, and dividend growth rate assumptions. The calculations show year-by-year projections of portfolio value, cumulative contributions, and annual dividend income based on the parameters entered. Note: Canadian dividend income is grossed-up for tax purposes (eligible dividends multiply your taxable income by 1.38x), which can significantly impact income-tested benefits including OAS clawback (15% reduction on income over $90,997 in 2025) and Canada Child Benefit eligibility. This calculator does not account for tax implications, benefit clawbacks, or withdrawal strategies - it only models the accumulation phase of dividend-focused investing.