Dividend Reinvestment (DRIP) Calculator
Project how a dividend stock grows when dividends are reinvested — shares, value and yearly income — with dividend and price growth.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter your starting investment, dividend yield and expected dividend and price growth.
- 2Add a yearly contribution and the number of years.
How it's calculated
Each year: dividends = shares × dividend per share (after tax); reinvested dividends and contributions buy shares at that year's price; price and dividend per share grow at their rates.
Frequently asked questions
Why does reinvesting matter so much?
Reinvested dividends buy more shares, which pay more dividends — compounding that has historically been a large share of stock market total returns.
Do I pay tax on reinvested dividends?
In taxable accounts, yes — dividends are taxable in the year received even if reinvested. Enter a dividend tax rate to model that.
Is dividend growth guaranteed?
No. Use conservative assumptions; companies can freeze or cut dividends.