# Dividend Calculator Home > Calculators > Dividend Calculator

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#### What is Dividend?

A dividend is a portion of a company's profits that is distributed to its shareholders. It's a way for the company to share its financial success with the owners of its stock.

Here's a simple example: Let's say you own shares in a company that manufactures EV vehicles. The company had a very good year and made a lot of profit from selling EV Vehicles. Now, the company has decided to give some of that profit back to its shareholders as a dividend.

So, if you own 10 shares in the company, and they decide to give a dividend of Rs 1 per share, you would receive Rs 10 in total (1 per share x 10 shares) as your dividend.

Dividends are a way for companies to reward their shareholders for investing in them. It's like getting a little bonus for being part of the company's success!

#### What is a Dividend Calculator?

A dividend calculator is a tool that helps you figure out how much money you'll receive from a company as dividends based on the number of shares you own and the dividend rate.

Here's how it works: You input the number of shares you own and the dividend rate (the amount of money paid per share), and the calculator does the math for you to show how much you'll receive in dividend payments.

For example, if you own 200 shares of a company and the dividend rate is 0.50 per share, the calculator will tell you that you'll receive 100 in total (0.50 x 200 shares) as dividend payments.