What this tool does
The Dividend Yield Calculator turns a stock’s price and its dividend into the numbers income investors actually compare. Enter the share price and the annual dividend per share to get the dividend yield as a clear percentage. Add the number of shares to project your annual and monthly income, and add EPS (earnings per share) to see the payout ratio. Everything runs in your browser and updates as you type.
How dividend yield is calculated
The core formula is simple:
- Dividend yield (%) = annual dividend per share ÷ share price × 100
- Annual income = annual dividend per share × number of shares
- Monthly income = annual income ÷ 12
- Payout ratio (%) = annual dividend per share ÷ EPS × 100
- Total investment = share price × number of shares
So a ₹4.20 dividend on a ₹100 share is a 4.2% yield. Hold 100 of those shares and the projected annual income is ₹420 (₹35 a month) on a ₹10,000 investment. If the company earns ₹10.50 per share, the payout ratio is 40% — meaning 40 paise of every rupee earned is returned to shareholders. The calculation is a pure function, so the maths is deterministic and identical every time.
Disclaimer
This tool is for informational and educational purposes only and is not financial, investment, or tax advice. Dividend yield is a snapshot based on the figures you enter; dividends are not guaranteed and can be cut, suspended, or raised at any time, and a high yield can reflect a falling price rather than a healthy payout. Do your own research and consult a SEBI-registered investment adviser before making any investment decision.