Dividend Income Goal Calculator
How much do you need to invest to earn ยฅ100,000 a month in dividends? Enter a target dividend income (monthly or yearly) and an assumed yield to work backwards to the required principal, in a taxable account (20.315% Japanese withholding tax) or a tax-free NISA account.
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Input
High-dividend stocks typically yield around 3-5%.
Result
Required investment principal
ยฅ37,648,240
Estimated principal needed to receive ยฅ100,000 per month (ยฅ1,200,000 per year) in after-tax dividends at a 4% yield.
Pre-tax annual dividends
ยฅ1,505,930
Annual tax
ยฅ305,930
After-tax effective yield
3.19%
In a taxable account, dividends are subject to Japan's 20.315% withholding tax, so you need about 1.25x the principal of a NISA account.
How it works
- Required principal = annual target dividends (after tax) รท (dividend yield ร(1 โ tax rate)). A monthly target is multiplied by 12 to get the annual figure, and the principal is rounded up to the next yen.
- In a taxable account, the tool assumes Japan's 20.315% withholding tax on listed-stock dividends (15% income tax + 0.315% special reconstruction tax + 5% resident tax) and works backwards so that the after-tax amount meets your target. A NISA account is treated as tax-free (0%).
- Pre-tax annual dividends = annual target รท(1 โ tax rate); annual tax = pre-tax dividends โ after-tax target; effective after-tax yield = dividend yield ร(1 โ tax rate).
- The dividend yield is a pre-tax annual figure, and the calculation assumes the share price and dividend per share stay constant. Actual dividends and the required principal change with price moves, dividend increases and cuts.
- Differences from electing aggregate taxation with the dividend credit or separate self-assessment taxation, foreign withholding tax on overseas stocks, and loss offsetting in designated accounts are not considered.
- Results are rough estimates only. This tool does not recommend any specific security or product; make investment decisions at your own responsibility.
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