If you want to know how much profit you will earn after investing in a shared or dividend stock then, a dividend calculator can help you out. This calculator has helped many investors to know their share in the earned profit. You might have heard about partners fighting over the earned profit from the investment that they have made mutually. So, if you are also having a share with your partner or friend then, try this calculator.
This DRIP Calculator Helps:
This incredible calculator has helped many investors to prevent themselves from a fight while dividing the share that they have earned mutually. In this article, you will know how this calculator works and how it can help you to get the exact amount of profit that you have earned through your investment.
Total Cost Yield Yearly Dividend Quarterly Dividend Monthly Dividend
A dividend calculator india has different features that can help you depending upon the investment that you have shared. This calculator uses a simple formula that will tell you about the profit amount that you and your partner have earned.
Plus, it will also divide the profit equally or depending on the percentage of the investment that each party has made. So, no more fighting while sharing the profit because you have got the right tool that will make your business relationship stronger.
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How to use a dividend calculator
Let’s say that you know the stock market and you do not need to consult with anyone regarding your investment then, you are good to go with your plans.
- Now, when you are investing in some stocks, you realize that you have less investment than the required amount. Now, you need a partner who can invest with you.
- This will not only lessen your investment also there will be someone to share the happiness of the profit earned or bearing the loss.
- You have invested with your partner. You have purchased some shares of any company and are waiting for the prices to go up so that you could earn profit.
- When the prices go up, you can sell the shares you purchased and you and your partner have earned a good amount of profit. Now, it is time to share the profit according to the percentage of the investment that each party made.
- Here comes the use of a simple dividend payout calculator.
- You can simply put the profit that you have earned in the calculator.
- The simple dividend calculator will provide the share of the profit that comes in your side and your partner’s side as well.
Dividend calculator DRIP
You must have heard about reinvesting. The dividend calculator DRIP works the same. DRIP means a dividend reinvestment plan. So, if you want to earn more profit from the shares that you have purchased then, the DRIP calculator is a nice way of increasing your money. All you need to do is to reinvest the money that you have earned through selling your shares of the stock.
Let’s say that you invested in some shares. After the prices went up, you sold your shares and earned profit. Now, you can reinvest this profit by purchasing more shares and selling those shares when the prices rise again. You might be thinking that why not use the profit and invest the amount that was invested before?
You can do that but it is not how the dividend reinvestment calculator works. You will surely earn profit with that approach but the amount will be the same or near to that what you earned before.
With the reinvestment plan of the dividend asx calculator, you will earn a profit, but the invested amount will also be added, which will let you earn more profit as you have more shares of that company you have invested throughout. So, make sure that you use the DRIP calculator if you are looking to earn a big amount of profit from your investment.
How does a dividend calculator work?
When you reinvest, you are likely to earn more profit.
- Plus, the initial investment is also added to the total purchasing cost.
- This allows you to have more shares and the next time you sell the shares, you earn a greater amount of profit.
- This is simply termed compounding. In the case of compounding, there is another formula that can help you know the exact amount of profit that you have earned.
- The formula is mentioned and discussed below:
FV = P * (1 + r/m) ^ m * t
- Now, let us discuss the values that you need to know to put in this formula.
- In the formula mentioned above, the FV is the final balance, P is the investment that you have made, r represents the dividend yield, m represents the frequency of compounding, and t represents the time for which you have invested the money.
- It can be in years or months as well. So, if you use this formula then, you can get to know the final balance that you will be earning after investing what amount for how much time.
Dividend yield calculator
Now, you are familiar that the ex dividend helps to calculate each share you have in an investment, and you are paid based on each share you hold. A dividend yield calculator helps you to know what amount you have earned in percentage. While investing in the stock market, you will get real surprises. Sometimes, you invest in different dividend-paying stocks and the amount of profit you earn is very different from each other. Even when the cost or investment you made is equal. Although it depends on the price of the stocks that you have purchased.
The dividend yield formula can let you know the exact amount that you have invested every year. Let’s say that you made different investments in the previous year and now you want to know how much total amount you invested and what you earned against each investment. To count your investment in the percentage, you can use the dividend yield formula. This will help you in knowing every profit that you have earned in percentage. Here is the formula that you can use:
DY = annual dividend / stock price * 100.
First, you need to put the values in the formula of the annual dividend that you have invested and divide it into the stock price. This equation will get you the dividend yield. Now, you have got the value that you were looking for. Still, it is not completed. As mentioned earlier, this formula helps in knowing the values in percentage. So, you have to multiply the dividend yield value by one hundred. And, you have got the value in percentage.
Monthly dividend calculator
With the DRIP calculator, you reinvest your profit into the shares that you have purchased and earned profit. Now, when you keep on investing the profit into the same shares, your dividend share will be compounded. It means that whenever you will earn a profit and reinvest it then, your amount will keep on increasing with high numbers.
Because you are carrying more shares and whenever you invest in the same stock, the profit value gets increased. With a monthly share dividend calculator uk, your money will keep on increasing and you will be making more profit as compared to an annual or a quarterly dividend calculator.
It is very simple to understand that when you invest on a monthly basis, you earn every month. This will keep your money increasing every month. Let’s say that you have invested in stocks and have earned profit within a month. Now, you have reinvested your money in the same shares. This monthly investing exercise will keep your money on a roll.
When your money keeps on increasing every month through the monthly dividend calculator then, this is called compounding. With this monthly investment, you are involved in the DRIP calculator, and that is very good for your money.
What can a dividend calculator do for you?
A dividend calculator has helped all the users in terms of their investment and profit-sharing. This calculator is specially programmed to calculate the share between dividends that have been mutually invested in the stocks of any company. Many users of this tool use this calculator according to the investments that they have made.
Some investors use it for annual percentage calculation, some use it for quarterly investments, and many use it for monthly calculations regarding their investments and the profit they earn. So, you can use this calculator for the calculation of the investments and the profits earned against each investment.
This calculator has many features depending on the investments and the prices of the shares. Let’s say that you have purchased some shares at a low price and when you sell these shares, you need to calculate the shared profit between the investors. The dividend calculator will do that for you.