NAV Erosion Calculator
A high yield only helps if the share price holds up. See what a falling price does to your payouts, and how much you’d have to reinvest to stay even.
The headline yield is 40.0%, but the falling price takes back 25.0 points of it. You would need to reinvest about 71% of every payout just to keep your position worth what it is today; only the rest is truly spendable.
| Year | Share price | Shares | Position value | Paid that year | Cash taken so far |
|---|---|---|---|---|---|
| 1 | $15.00 | 500.0 | $7,500 | $3,500 | $3,500 |
| 2 | $11.25 | 500.0 | $5,625 | $2,625 | $6,125 |
| 3 | $8.44 | 500.0 | $4,219 | $1,969 | $8,094 |
| 4 | $6.33 | 500.0 | $3,164 | $1,477 | $9,570 |
| 5 | $4.75 | 500.0 | $2,373 | $1,107 | $10,678 |
How this works
Each year the share price moves by the rate you enter, the fund pays its yield on the year’s average share price, and the share of the payout you chose is used to buy more shares at the year-end price. It assumes a constant yield and a constant price trend, which real funds never have, so treat it as an illustration, not a forecast. It ignores taxes and fees.
Grades: A = price flat or rising, B = down up to 5% a year, C = down up to 15%, D = down up to 30%, F = down more than 30%.
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Hypothetical Results: Calculator outputs are illustrations based on the numbers you enter and on simplified assumptions. They are not forecasts or guarantees, and actual results will differ.
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