Useful next calculations
Rates and sources
Compound growth assumes reinvested returns and no platform fees. Past performance is not a guide to future returns.
Source: FCA — Investment basics. Check the linked guidance and any live quote before acting.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Annual Dividend Per Share (£) | £1.2 |
| Share Price (£) | £25 |
| Number of Shares | 100 |
For those figures the calculator returns:
- Yield: 4.80%
- Annual income: £120.00
- Portfolio value: £2,500.00
Method & assumptions
This calculator computes dividend yield as annual dividend per share divided by current share price, expressed as a percentage. It can also work in reverse — enter a target yield and share price to determine the implied annual dividend. The calculation is a point-in-time snapshot based on the most recently declared annual dividend; it does not account for special dividends, dividend cuts, or the impact of share price movements between ex-dividend dates. Results are gross figures before UK dividend tax. Dividends held within a Stocks and Shares ISA are exempt from UK income tax. The calculator does not assess dividend sustainability or company fundamentals. Always conduct thorough due diligence before making investment decisions based on yield alone. This tool is for educational purposes only.
Common mistakes
- Assuming a constant return without checking a more conservative growth rate.
- Forgetting ongoing contributions, fees or tax wrappers where relevant.
- Focusing only on the final balance instead of the path required to reach it.
- Ignoring the drag of charges over a long period.
What to do next
- Test a cautious, expected and optimistic growth rate.
- Compare this result with related savings or retirement tools before committing more money.
- Consider charges and any tax wrapper that applies.
- If the projected balance falls short, increase the contribution until the result meets your goal.