Dividend Reinvestment Calculator
Calculate the power of dividend reinvestment (DRIP). Compare your wealth with and without reinvesting dividends.
Final Value (With DRIP)
$53,486
Without DRIP
$41,991
DRIP Advantage
+$11,495
Annual Income (With DRIP)
$1,235
Total Dividends Received
$9,920
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How It Works
- 1Enter your initial investment amount.
- 2Set the current dividend yield of your investment.
- 3Estimate the annual dividend growth rate.
- 4Estimate the annual share price growth rate.
- 5Choose your investment timeline and DRIP preference.
- 6Compare results with and without dividend reinvestment.
The formula
- Dividend yield(t) = Initial yield × (1 + dividend growth)^(t − 1)
- Shares(t) = Shares(t − 1) × (1 + Dividend yield(t))
- Share price(t) = Initial investment × (1 + price growth)^t
- Portfolio value(t) = Shares(t) × Share price(t)
Dividends are calculated on your original cost basis. With reinvestment, each year's dividend buys additional shares at that year's price. Without reinvestment, the dividends are summed and added to the final share value.
Worked example
Invest $10,000 at a 3% starting dividend yield. The dividend grows 5% a year, the share price grows 6% a year, over 20 years.
- 1Share price after 20 years: $10,000 × 1.06^20 = $32,071
- 2Without reinvestment, the 20 dividends add up to $9,920, so the total is $32,071 + $9,920 = $41,991
- 3With reinvestment, each dividend buys more shares, and the holding grows to $53,486
Reinvesting adds $11,495. The final-year dividend is $1,235 with reinvestment and $758 without.