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Dividend Yield Calculator UK
Calculate dividend yield, annual dividend income, monthly income equivalent, estimated dividend tax and net dividend income.
2026/27 allowance: £500
ISA toggle included
Dividend tax estimate
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Calculate dividend yield and tax
Enter the share price, dividend per share and number of shares held. The calculator updates automatically.
Current share price or average buying price.
Use total expected dividend per share for the year.
Number of shares you own.
Choose the band you expect dividends to fall into.
Other dividends already using the allowance.
Used only to estimate payment size.
Dividends inside an ISA are normally sheltered from UK dividend tax.
How to use this calculator
- Enter the share price and annual dividend per share.
- Add the number of shares you hold.
- Select your expected dividend tax band.
- Tick the ISA box if the holding is inside an ISA.
- Review the yield, gross dividend income, tax and net dividend income.
What your dividend yield result means
Dividend yield shows annual dividend income as a percentage of the share price. It helps compare income from different dividend shares or funds.
Net dividend income is the estimated income left after applying the dividend allowance and the tax band selected in the calculator.
Important: dividends are not guaranteed. A high yield can sometimes reflect a falling share price or a dividend that may be cut.
Compare dividend income with tax wrappers
If dividend tax matters, compare holding investments inside an ISA or pension with taxable accounts.
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How dividend yield works
Dividend yield compares annual dividend income with the share price. If a share costs £10 and pays 50p per year in dividends, the dividend yield is 5%.
The yield can change because the dividend changes or because the share price moves. A rising dividend can increase the yield, but a falling share price can also make the yield appear higher.
Dividends held outside an ISA may be taxable once your Dividend Allowance has been used. Dividends inside a Stocks and Shares ISA are normally sheltered from UK dividend tax.
Dividend income can be useful for investors who want cash flow, but it should be viewed alongside total return, capital growth, fees, tax and investment risk.
What affects dividend yield and income
- Share price: a lower share price increases the yield if the dividend stays the same.
- Dividend per share: a higher dividend increases both the yield and income.
- Shares held: more shares increase the total dividend income.
- Payment frequency: this changes the expected payment size but not the total annual dividend.
- Tax band: the dividend tax rate depends on the tax band the dividends fall into.
- ISA status: dividends inside an ISA are normally tax-free.
Dividend yield calculator formula
The calculator first works out dividend yield, then estimates dividend income and tax.
dividend_yield =
annual_dividend_per_share ÷ share_price × 100
annual_dividend_income =
annual_dividend_per_share × shares_held
investment_value =
share_price × shares_held
allowance_remaining =
£500 - other_taxable_dividends
taxable_dividends =
annual_dividend_income - allowance_remaining
dividend_tax =
taxable_dividends × dividend_tax_rate
net_dividend_income =
annual_dividend_income - dividend_tax
Dividend tax quick reference
Figures shown are for the 2026/27 tax year.
| Item | 2026/27 figure | How this calculator uses it |
|---|---|---|
| Dividend allowance | £500 | Deducted before estimating dividend tax, unless the holding is inside an ISA. |
| Basic-rate dividend tax | 10.75% | Applied when you select basic rate. |
| Higher-rate dividend tax | 35.75% | Applied when you select higher rate. |
| Additional-rate dividend tax | 39.35% | Applied when you select additional rate. |
Dividend yield calculator FAQs
How do you calculate dividend yield?
Dividend yield is annual dividend per share divided by share price, multiplied by 100.
What dividend allowance does this calculator use?
It uses a £500 dividend allowance for the 2026/27 tax year.
What dividend tax rates does it use?
It uses 10.75% for basic rate, 35.75% for higher rate and 39.35% for additional rate on taxable dividends above the allowance.
Are dividends inside an ISA taxable?
Dividends received inside an ISA are normally sheltered from UK dividend tax.
Is a high dividend yield always good?
No. A high yield may sometimes mean the share price has fallen or that the market expects the dividend to be reduced.
Key terms used in this calculator
These glossary pages explain the main terms used when estimating dividend income, dividend tax and tax-efficient investing.