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Dividend Retirement Calculator

The crossover point where dividends cover your living costs, plus stress scenarios

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Crossover — when dividends cover your expenses

15y 4m from now
Portfolio at crossover$1,311,661
Monthly dividends then (net)$5,889
Expenses then (nominal)$5,841

Monthly dividend growth

Net dividendsTarget expensesStress case
$13,801$10,351$6,901$3,450$0
Monthly dividend growth
0y4y8y13y17y21y

Stress scenarios

Compared with the base case
Dividend cut 30%19y 11m4y 7m later than base
Inflation shock +3pp19y 10m4y 6m later than base
Both at once26y 10m11y 6m later than base

Year-by-year detail

Annual projection
YearPortfolioAnnual dividends (net)Monthly dividendsCoverage
Year 1$155,335$5,442$45411%
Year 2$193,920$7,001$58314%
Year 3$236,130$8,785$73217%
Year 4$282,391$10,826$90220%
Year 5$333,187$13,163$1,09724%
Year 6$389,066$15,839$1,32028%
Year 7$450,653$18,905$1,57533%
Year 8$518,658$22,421$1,86838%
Year 9$593,895$26,456$2,20544%
Year 10$677,291$31,091$2,59151%
Year 11$769,911$36,420$3,03558%
Year 12$872,975$42,554$3,54666%
Year 13$987,889$49,623$4,13575%
Year 14$1,116,269$57,780$4,81585%
Year 15$1,259,984$67,207$5,60197%
Year 16$1,421,196$78,116$6,510110%
Year 17$1,602,407$90,761$7,563124%
Year 18$1,806,530$105,440$8,787141%
Year 19$2,036,950$122,513$10,209160%
Year 20$2,297,621$142,402$11,867181%
Year 21$2,593,165$165,618$13,801205%

Work out when dividends can replace your paycheck

Dividend-based FIRE hinges on the crossover point: the month your after-tax dividend income passes your living costs. Enter your portfolio, monthly investment, yield, dividend growth, price appreciation, withholding tax and inflation, and the model runs a month-by-month DRIP simulation to find that date and the portfolio size behind it — then stress-tests it against dividend cuts and inflation shocks.

How to use this calculator

  1. Enter the portfolio and monthly amount you can invest without relying on uncertain bonuses.
  2. Use the fund's current distribution yield, then separate dividend growth from share-price growth.
  3. Compare the base result with a dividend cut and higher-inflation case before using the crossover date.

How to read the result

The crossover date is the first month modeled after-tax dividends cover modeled expenses. The portfolio value at that point matters too: a result driven mainly by a very high starting yield is less resilient than one supported by continued contributions and dividend growth.

What this estimate does not capture

Yield is not guaranteed and a distribution can include return of capital. Verify a fund's distribution history, tax character and concentration before treating the displayed income as durable.

Methodology, assumptions & limits

Inputs are applied directly to standard finance formulas with monthly compounding where relevant. Results are estimates in the selected currency; they do not include every tax, fee, benefit, market event or local rule. Try a conservative and an optimistic case before making a decision.

Last reviewed: August 2026. Primary references include the IRS 2026, SSA, BLS CPI, U.S. DOL, CFPB.

Frequently asked questions

How much do I need to retire on dividends?

You need the portfolio where after-tax monthly dividends exceed monthly spending. At a 4% yield and 15% tax, $4,000 a month takes about $1.41M.

What is the crossover point?

The moment after-tax dividends first exceed your expenses. From there you can live without selling principal.

What dividend tax rate should I use?

Qualified US dividends are commonly taxed at 15%; non-resident treaty withholding is often 15% as well. Use the preset buttons to switch quickly.

What numbers fit a high-yield ETF?

Split yield from growth. Dividend-growth funds run roughly 3% yield with 8% growth; high-yield income funds run 7–10% yield with 0–2% growth.

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All math runs in your browser and your inputs are never sent to a server. Settings are saved locally and share links encode the state in the URL. For information only — not investment or tax advice.