Dividend Snowball Calculator
The dividend snowball is slow, then fast. Add money every month, reinvest every dividend, and one year the dividends add more than you do. Enter what you can invest and a yield and growth rate (or load a ticker to prefill them from live data), and see the year dividends cover your monthly income goal, the year they out-earn your contributions, and the year they have paid back every dollar you put in.
SCHD Schwab U.S. Dividend Equity ETF
$35.65 · $1.06/yr dividend · 2.96% yield · quarterly
Prefilled from SCHD: live yield, 5-year dividend growth, price growth kept near dividend growth.
Every dividend is reinvested. Results are before tax, as in an IRA, Roth IRA or 401(k).
Dividends reach $1,000 a month
Year 19
Around 2044
Dividends out-earn your contributions
Year 14
Around 2039. Over $6,000 a year
Dividends have paid back all you put in
Year 23
Around 2048
Dividends in year 30
$52,348
$4,362 a month
Portfolio value, year 30
$1,500,079
Share of money in from dividends
69%
$408,969 of dividends vs $181,000 from you
Your money vs. dividends
New money each year: what you add and what dividends add (starting amount not shown)
Snowball milestones
Year-by-year table
| Year | Added this year | Dividends | Monthly income | Total from you | Total dividends | Value |
|---|---|---|---|---|---|---|
| 1 | $6,000 | $139 | $12 | $7,000 | $139 | $7,484 |
| 2 | $6,000 | $336 | $28 | $13,000 | $475 | $14,699 |
| 3 | $6,000 | $559 | $47 | $19,000 | $1,034 | $22,729 |
| 4 | $6,000 | $811 | $68 | $25,000 | $1,845 | $31,673 |
| 5 | $6,000 | $1,097 | $91 | $31,000 | $2,942 | $41,637 |
| 6 | $6,000 | $1,419 | $118 | $37,000 | $4,361 | $52,744 |
| 7 | $6,000 | $1,784 | $149 | $43,000 | $6,145 | $65,129 |
| 8 | $6,000 | $2,196 | $183 | $49,000 | $8,341 | $78,945 |
| 9 | $6,000 | $2,662 | $222 | $55,000 | $11,003 | $94,365 |
| 10 | $6,000 | $3,189 | $266 | $61,000 | $14,191 | $111,580 |
| 11 | $6,000 | $3,784 | $315 | $67,000 | $17,975 | $130,808 |
| 12 | $6,000 | $4,456 | $371 | $73,000 | $22,432 | $152,291 |
| 13 | $6,000 | $5,217 | $435 | $79,000 | $27,648 | $176,305 |
| 14 | $6,000 | $6,077 | $506 | $85,000 | $33,725 | $203,156 |
| 15 | $6,000 | $7,049 | $587 | $91,000 | $40,774 | $233,191 |
| 16 | $6,000 | $8,148 | $679 | $97,000 | $48,922 | $266,800 |
| 17 | $6,000 | $9,391 | $783 | $103,000 | $58,313 | $304,422 |
| 18 | $6,000 | $10,798 | $900 | $109,000 | $69,111 | $346,551 |
| 19 | $6,000 | $12,390 | $1,032 | $115,000 | $81,501 | $393,744 |
| 20 | $6,000 | $14,191 | $1,183 | $121,000 | $95,692 | $446,629 |
| 21 | $6,000 | $16,230 | $1,353 | $127,000 | $111,922 | $505,913 |
| 22 | $6,000 | $18,539 | $1,545 | $133,000 | $130,462 | $572,395 |
| 23 | $6,000 | $21,155 | $1,763 | $139,000 | $151,616 | $646,975 |
| 24 | $6,000 | $24,117 | $2,010 | $145,000 | $175,734 | $730,669 |
| 25 | $6,000 | $27,475 | $2,290 | $151,000 | $203,209 | $824,625 |
| 26 | $6,000 | $31,281 | $2,607 | $157,000 | $234,489 | $930,139 |
| 27 | $6,000 | $35,596 | $2,966 | $163,000 | $270,086 | $1,048,675 |
| 28 | $6,000 | $40,491 | $3,374 | $169,000 | $310,577 | $1,181,888 |
| 29 | $6,000 | $46,045 | $3,837 | $175,000 | $356,622 | $1,331,650 |
| 30 | $6,000 | $52,348 | $4,362 | $181,000 | $408,969 | $1,500,079 |
Highlighted: the first year dividends added more than you did.
Projection, not a forecast: growth rates are held constant and no dividend is cut. Contributions go in at the start of each month, dividends are raised once a year. Compare a high yield with a fast grower
Example: $500 a month at SCHD's yield and growth
As of Nov 10, 2026, Schwab U.S. Dividend Equity ETF (SCHD) yields 2.96% and has grown its dividend 9.1% a year over five years. Start with $1,000, add $500 a month, reinvest everything and assume the share price grows 8.1% a year:
- Year 1 dividends are $139. You added $6,000.
- By year 10, dividends are $3,189 a year ($266 a month).
- In year 14 dividends out-earn your $6,000 a year of contributions.
- In year 19 they average $1,000 a month.
- In year 23 your total dividends received pass everything you put in.
- By year 30 the portfolio is worth $1,500,079 and pays $52,348 a year ($4,362 a month), from $181,000 of your money.
Projection only: assumes constant growth and no dividend cuts. Change any assumption in the calculator above.
How long to $500, $1,000 and $2,000 a month in dividends
Years to each milestone by monthly contribution, starting from $1,000, at SCHD's 2.96% yield and 9.1% dividend growth:
| Added monthly | $500/mo income | $1,000/mo | $2,000/mo | Dividends beat contributions |
|---|---|---|---|---|
| $250 | year 19 | year 24 | year 30 | year 14 |
| $500 | year 14 | year 19 | year 24 | year 14 |
| $1,000 | year 10 | year 14 | year 19 | year 14 |
| $2,000 | year 7 | year 10 | year 15 | year 15 |
Notice the last column barely moves. Dividends beat contributions when the portfolio reaches about contributions ÷ yield, and a bigger contribution raises that bar as fast as it builds the portfolio. What it does change is the dollar amount: the snowball you end up with.
How the snowball is calculated
Dividends this year = shares owned × dividend per share (paid quarterly, raised once a year)
New shares = (monthly contribution + dividends received) ÷ share price that month
Dividends beat contributions when portfolio value × yield > monthly contribution × 12
Without any growth the math is simple. $500 a month at a flat 4% yield takes year 18 for dividends to pass $6,000 a year (the portfolio must reach $150,000) and year 28 to reach $1,000 a month. Dividend growth shortens both, which is why the growth rate you assume matters as much as the yield.
Keeping the snowball rolling
- Use a tax-advantaged account if you can. In a taxable account, reinvested dividends are taxed each year, which slows the snowball. Estimate the cost with the dividend tax calculator.
- A cut resets years of progress. Check the dividend safety grade of what you buy.
- Keep adding through bad markets. Lower prices mean each contribution and each dividend buys more shares.
- Model the details. The DRIP calculator adds taxes, fund fees and inflation to the same projection.
Comparing portfolio trackers? See our Snowball Analytics alternatives.
Dividend market facts
Data as of · Source: SmarterDividends data
- As of Nov 10, 2026, the median forward dividend yield among U.S.-listed dividend-paying stocks with a market value of at least $500 million is 2.50%.
- As of Nov 10, 2026, 110 U.S.-listed stocks in SmarterDividends' data have raised their dividend for 25 or more consecutive years.
- In the 30 days to Nov 10, 2026, 150 U.S.-listed companies raised their regular dividend and 3 cut it, by ex-dividend date. That is 50.0 increases for every cut.
Cite this page
SmarterDividends, "Dividend Snowball Calculator," updated Nov 10, 2026, https://smarterdividends.com/calculators/dividend-snowball-calculator
Frequently asked questions
What is the dividend snowball?
It is the effect of reinvesting dividends while you keep adding money. Each payment buys more shares, those shares pay their own dividends, and the companies raise their payouts too. Early on almost all the growth comes from your contributions. Later the dividends add more each year than you do, and the snowball keeps rolling even if you stop.
How long does it take for a dividend snowball to work?
Longer than most people expect. Starting with $1,000 and adding $500 a month at SCHD's yield and growth as of Nov 10, 2026 (2.96% yield, 9.1% dividend growth), dividends out-earn your $6,000 a year of contributions in year 14 and reach $1,000 a month in year 19. The first decade feels slow. The second does most of the work.
When do dividends exceed my contributions?
When your portfolio is worth your annual contributions divided by the yield. Adding $500 a month ($6,000 a year) at a 3% yield, that is a $200,000 portfolio. At a 4% yield it is $150,000. Rising dividends and share prices get you there sooner than contributions alone.
How much do I need to invest each month to get $1,000 a month in dividends?
With the SCHD-based assumptions above: $250 a month gets there in year 24, $500 in year 19, $1,000 in year 14 and $2,000 in year 10. Doubling what you add doesn't halve the time, because dividend growth does a growing share of the work.
Does a higher yield make the snowball faster?
On paper, yes, if the dividend holds. $500 a month into a 7% yield that grows 1% a year reaches $1,000 a month in year 15, against year 19 at SCHD's yield and growth. The catch: high yields get cut more often, and a cut stops a snowball cold. Many high yielders also see their share price drift down over time, so each reinvested dollar buys income that is less secure.
Do I have to reinvest dividends for the snowball to work?
Yes. The snowball is reinvestment. If you take dividends as cash, your income still grows when companies raise payouts, but you lose the extra shares that compound. Many investors reinvest until they need the income, then switch the dividends to cash.
Is this the same as Snowball Analytics?
No. The dividend snowball is an investing idea. Snowball Analytics is a portfolio tracking app named after it. This calculator is free and needs no account. If you are comparing trackers, see our list of Snowball Analytics alternatives.
For education and planning only, not investment, tax or legal advice. Projections assume constant growth rates; real dividends, prices and tax rules change.