Reverse Income Calculator

How much do I need to invest for $X/month in dividends?

Required Portfolio Value

To generate $2,000/month, you need:

SCHD
Schwab US Dividend Equity ETF
3.4% yield34% of income
$240,000
~2,927 shares at $82
JEPI
JPMorgan Equity Premium Income ETF
7.5% yield33% of income
$105,600
~1,853 shares at $57
VYM
Vanguard High Dividend Yield ETF
2.9% yield33% of income
$273,103
~2,276 shares at $120

Total Investment Required

$618,703
trending_up3.88% blended yield
3 ETFs, custom split

Comparison

JEPI requires the least capital at $105,600 due to its higher yield (7.5%). That's $167,503 less than VYM (2.9% yield).

FAQ

How much do I need invested to generate $1,000 per month in dividends?

At a 4 percent yield you need $300,000. At 3 percent, $400,000. At 6 percent (covered call ETFs), $200,000. The reverse calculator does this math for 74 ETFs using real yield data.

How much is needed for $2,000 per month from SCHD?

At SCHD's roughly 3.5 percent yield, $2,000 per month requires about $685,000 invested. The exact number updates with the current yield shown in the calculator.

What yield should I use for a conservative estimate?

Plan for a lower yield than the fund currently pays. SCHD has averaged around 3 percent long-term; using 3 percent instead of the current 3.5 percent builds in margin for yield compression.

Can I really live on dividends?

Yes, but it takes more capital than using a total-return withdrawal strategy. Living on dividends alone at a 3 percent yield requires 33x annual expenses; the classic 4 percent rule needs only 25x. Many FIRE investors use a blend.

Should I use high-yield ETFs like JEPI to hit my number faster?

Higher yield looks appealing but covered call ETFs often trade lower price appreciation for higher income. That means your capital doesn't grow as fast, which can hurt long-term income. The calculator lets you compare total return across yield profiles.

This tool is for educational and informational purposes only. It does not constitute financial advice. Past performance does not guarantee future results. Consult a qualified financial advisor for personalized advice.