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.
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.
The crossover point where dividends cover your living costs, plus stress scenarios
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.
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.
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.
UNDERSTAND THE NUMBERS
Fixed educational example · independent of your inputs above. $ means US dollars; these are not current rate quotes or return forecasts.
For $3,000 of monthly spending, annual need is $36,000. With an illustrative 15% tax, compare gross dividend yields of 4% and 3%. This is a static income target with no growth or reinvestment.
| Gross yield | Net yield | Capital needed |
|---|---|---|
| 4% | 3.4% | $1,058,824 |
| 3% | 2.55% | $1,411,765 |
Reducing yield from 4% to 3% cuts income by 25%, but the capital required for the same income rises by one third. A higher yield is not free protection: assess whether the cash payout can persist rather than selecting a yield solely to make the target smaller.
Dividend growth and share-price growth are separate inputs. The crossover date is the first modeled month income covers inflation-adjusted spending; it is not a guarantee for every later month. Reinvested dividends cannot also be counted as money available to spend.
Turn reinvestment off and compare a dividend cut with higher inflation. If the plan depends on spending every dividend, the reinvestment path does not represent that retirement budget.
Check income from the shares you hold →Prepared by EconoPi · examples and explanations reviewed September 19, 2026. Tables are our calculations under stated assumptions, not forecasts or recommendations by the referenced organizations.
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.
The first modeled month when after-tax dividends cover inflation-adjusted expenses. It does not guarantee coverage in later months or account for an unexpected dividend cut.
Use an explicit estimate for your account, residence and distribution type. Presets are scenario inputs, not a determination of your legal tax rate or treaty eligibility.
Starting yield determines the initial payout, dividend growth changes future payouts, and price growth changes portfolio value. Use the actual distribution history as context and test lower payouts rather than assuming a fund category guarantees a yield.
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.