Finance Tools
Dividend Reinvestment (DRIP) Calculator
Estimate the long-term impact of dividend reinvestment (DRIP). See how reinvesting dividends compounds your investment value and dividend income over time.
Dividend Reinvestment (DRIP) Calculator
This calculator shows how reinvesting dividends (DRIP) can accelerate long-term portfolio growth compared to taking dividends as cash.
Results
Final Value with DRIP: $19,893.25
Final Value without DRIP: $13,439.16
Annual Dividend with DRIP: $795.73
Annual Dividend without DRIP: $537.57
Why dividend reinvestment matters
Reinvesting dividends allows you to purchase additional shares, which themselves generate dividends. Over long periods, this compounding effect can significantly increase both portfolio value and income.
How to use this dividend reinvestment (drip) calculator
- Enter your initial investment amount.
- Enter annual dividend yield (%).
- Enter expected annual price growth rate (%).
- Enter number of years you plan to reinvest dividends.
- Review final investment value and dividend income with DRIP.
Example
If you invest $10,000 with a 4% dividend yield and reinvest dividends for 10 years, your investment grows faster than taking dividends as cash.
- Initial investment = $10,000
- Dividend yield = 4%
- Annual price growth = 3%
- Years = 10
- Reinvested dividends compound into additional shares
More tools in Finance Tools
- After Tax Dividend Yield Calculator
Estimate your after-tax dividend yield and take-home dividend income by applying a dividend tax rate to your dividend yield.
- Qualified vs Ordinary Dividend Tax Calculator
Compare estimated taxes on qualified vs ordinary dividends and see the difference in take-home dividend income using two tax rates.
- After Tax Dividend Income Calculator
Estimate take-home dividend income after taxes. Calculate monthly and annual after-tax dividend income using dividend yield, investment amount, and dividend tax rate.
- Ex-Dividend Date Calculator
Calculate the ex-dividend date from a record date using common market conventions (T+1 or legacy T+2). Also estimate the last day to buy to receive the dividend.