Model yield on original cost
Current yield on cost—
Projected annual dividend per share—
Projected yield on cost—
Dividend change over period—Based only on the constant growth assumption entered above.
Free calculator
Yield on Cost Calculator.
See how a dividend-growth assumption changes income relative to an original purchase price. Keep the result separate from current dividend yield and total return.
How to interpret this tool
How to interpret yield on cost
What this tool calculates
The calculator compares the current and projected annual dividend with an original purchase price. The future value uses a constant dividend-growth assumption.
How to use it step by step
- Enter the original purchase price per share.
- Enter the current annual dividend per share.
- Choose a dividend-growth assumption.
- Choose the number of years and compare current versus projected yield on cost.
What the result means
The result shows how income relative to historical cost would change if the entered dividend-growth assumption occurred exactly.
What the result does not mean
It does not show current valuation, total return, future share price, dividend safety, inflation-adjusted income, or whether holding the security remains appropriate.
Common mistakes
- Confusing yield on cost with current dividend yield.
- Assuming a constant dividend growth rate will continue.
- Ignoring dividend cuts or special dividends.
- Using yield on cost to avoid comparing alternative uses of capital.
Related pages Methodology Disclaimer Dividend glossary Dividend yield calculatorDividend growth calculatorTrailing vs forward yield
Not financial advice: These tools are educational scenario helpers. They do not recommend securities, provide personalized financial guidance, or replace professional advice.
Yield on cost FAQ
What is yield on cost?
Yield on cost compares the annual dividend per share with the original purchase price per share. It can describe how dividend growth changes income relative to historical cost, but it does not measure current valuation or total return.
How is future yield on cost estimated?
This calculator grows the entered annual dividend by the entered annual growth assumption for the selected number of years, then divides the projected dividend by the original purchase price.
Why can yield on cost be misleading?
A high yield on old cost can look attractive even if the current share price, opportunity cost, dividend safety, inflation, or total return tell a different story.