Dividend Reinvestment Calculator
Currency
Money Invested
$
Return Rate (annual)
%
Number of Years
Below are the compounding returns from your inputs, calculated annually. You can switch currency—amounts are formatted only (no FX conversion).
Please enter valid numbers (rate ≥ 0, principal ≥ 0, years ≥ 1).
A Dividend Reinvestment Calculator (DRIP Calculator) helps you estimate how much your investments can grow when you reinvest dividends instead of taking them as cash. By automatically buying additional shares with each dividend payout, your portfolio can benefit from compounding returns over time.
Whether you’re investing in dividend stocks, ETFs, or mutual funds, this calculator shows you the power of reinvested dividends and how they impact your long-term wealth.
How to Use the Dividend Reinvestment Calculator
- Enter Initial Investment – The amount of money you plan to invest at the start.
- Input Dividend Yield (%) – The expected annual dividend yield of the stock/fund.
- Set Dividend Frequency – Monthly, quarterly, semi-annual, or annual.
- Annual Share Price Growth (%) – The expected stock appreciation rate.
- Investment Duration (Years) – How long you plan to hold the investment.
- Reinvestment Option – Choose to reinvest dividends or take them as cash.
Click Calculate to see:
- Final Portfolio Value
- Total Dividends Earned
- Shares Accumulated with Reinvestment
- Growth Comparison (with vs. without reinvestment)
Why Reinvest Dividends?
- Compounding Effect: Dividends used to purchase new shares generate more dividends in the future.
- Accelerated Growth: Over the long term, reinvested dividends can double or triple returns compared to cash withdrawals.
- Passive Wealth Building: A simple way to increase portfolio size without additional deposits.
Example Calculation
Suppose you invest $10,000 in a stock with:
- Dividend Yield: 4% annually
- Annual Price Growth: 6%
- Duration: 20 years
- Without reinvestment → Portfolio grows to ~$32,000
- With reinvestment → Portfolio grows to ~$64,000
This shows how reinvesting dividends can double your long-term returns.
Dividend Reinvestment vs. Cash Dividends
| Feature | Reinvest Dividends | Take Cash Dividends |
|---|---|---|
| Compounding | Builds over time | Missed growth |
| Income | No immediate cash | Provides passive income |
| Long-Term Value | Higher portfolio growth | Lower growth |
| Best For | Growth investors | Income seekers |