Investing calculator

Dividend Reinvestment Calculator

Model how reinvested dividends compound — DRIP growth, dividend income, DRIP vs taking cash, dividend and price growth, payout frequency, ongoing contributions, estimated taxes, and yield on cost. Six modes, payout-level detail, and a downloadable Excel workbook, in any currency.

Transparent assumptions 6 modes Monthly to annual payouts Partial reinvestment & tax drag Multi-sheet Excel report

Project my dividends DRIP formula

Dividends are not guaranteed and may be cut or suspended.

Your inputs

How do you want to enter your position?

Initial investment

Current share price

≈ 200 starting shares

Annual dividend yield

≈ $1.50 per share per year

Payout frequency

Dividend growth / year

Can be negative for a shrinking payout.

Share price growth / year

Can be negative. An assumption, not a forecast.

Holding period

years

Period unit

Use start and end dates instead

Reinvest this share of each dividend

100% = full DRIP · 0% = take all cash · anything between = partial.

Allow fractional shares

Off = whole shares only; leftover cash waits for the next payout.

Ongoing contributions (optional)

Contribution per year

Contribution frequency

Contribution timing

DRIP projection · Reinvesting 100% of dividends

Final portfolio value

$61,666

From $10,000 over 20.0 years.

Final share count

318.71

Started with 200.

Annual dividend income at end

$1,208

≈ $101/mo · $302/qtr run-rate.

Yield on cost

12.08%

End income ÷ total invested.

Total dividends earned

$13,143

Dividends reinvested

$13,143

Cost basis estimate

$23,143

Total invested + dividends reinvested. Actual basis depends on your broker records.

DRIP advantage vs taking cash

$13,049

Total return

516.66%

$51,666 gain on $10,000 invested.

Annualized return (approx.)

9.52%

Per year, compounded.

What this means

You start with 200 shares at $50.00 ($10,000). At a 3.00% yield, the first-year dividend is about $300.
With full reinvestment, dividends buy more shares every payout — the position grows to 318.71 shares and an estimated $61,666 after 20.0 years.
The reinvestment path ends about $13,049 ahead of taking every dividend as cash (counting the cash as kept, not spent).
Yield on cost ends at about 12.08% — the projected end dividend measured against what you invested, not against the future price.
This is a projection, not a forecast. It assumes steady price growth, steady dividend growth, and uninterrupted payouts — real dividends can be cut or suspended.

Includes your inputs, dividend projection, DRIP vs cash comparison, formulas, and disclaimer.

Projection charts

Illustrative only — these repeat your growth assumptions every year. Not a forecast.

With reinvestment vs taking cash

Reinvesting (100%)Taking cash (value + cash kept)

Annual dividend income over time

Annual dividend income (run-rate)

Share count growth

Shares (reinvesting)Shares (no reinvestment)

Where the dividends went

Reinvested $13,143

Year-by-year projection

Year-by-year dividend reinvestment projection. The condensed mobile view shows year, dividends, end shares, end value, and return to date; “Show all columns” reveals start shares, prices, yield, yield on cost, reinvested, cash, and new shares. Every value also appears in the downloadable workbook.
Year	Start shares	Start price	Div / share	Yield	Yield on cost	Dividends	Reinvested	Cash	New shares	End shares	End price	End value	Return to date
Year 1	200	$50.00	$1.50	3.00%	3.08%	$300	$300	$0	5.61	205.61	$53.50	$11,000	10.0%
Year 2	205.61	$53.50	$1.58	2.94%	3.33%	$324	$324	$0	5.66	211.26	$57.25	$12,094	20.9%
Year 3	211.26	$57.25	$1.65	2.89%	3.59%	$349	$349	$0	5.7	216.97	$61.25	$13,290	32.9%
Year 4	216.97	$61.25	$1.74	2.83%	3.87%	$377	$377	$0	5.75	222.72	$65.54	$14,597	46.0%
Year 5	222.72	$65.54	$1.82	2.78%	4.17%	$406	$406	$0	5.79	228.51	$70.13	$16,025	60.2%
Year 6	228.51	$70.13	$1.91	2.73%	4.49%	$437	$437	$0	5.83	234.34	$75.04	$17,584	75.8%
Year 7	234.34	$75.04	$2.01	2.68%	4.83%	$471	$471	$0	5.87	240.2	$80.29	$19,286	92.9%
Year 8	240.2	$80.29	$2.11	2.63%	5.19%	$507	$507	$0	5.9	246.11	$85.91	$21,143	111.4%
Year 9	246.11	$85.91	$2.22	2.58%	5.59%	$545	$545	$0	5.93	252.04	$91.92	$23,168	131.7%
Year 10	252.04	$91.92	$2.33	2.53%	6.00%	$586	$586	$0	5.96	258	$98.36	$25,376	153.8%
Year 11	258	$98.36	$2.44	2.48%	6.45%	$630	$630	$0	5.99	263.99	$105.24	$27,783	177.8%
Year 12	263.99	$105.24	$2.57	2.44%	6.93%	$677	$677	$0	6.01	270.01	$112.61	$30,405	204.1%
Year 13	270.01	$112.61	$2.69	2.39%	7.44%	$727	$727	$0	6.04	276.04	$120.49	$33,261	232.6%
Year 14	276.04	$120.49	$2.83	2.35%	7.98%	$781	$781	$0	6.06	282.1	$128.93	$36,370	263.7%
Year 15	282.1	$128.93	$2.97	2.30%	8.56%	$838	$838	$0	6.07	288.17	$137.95	$39,754	297.5%
Year 16	288.17	$137.95	$3.12	2.26%	9.18%	$899	$899	$0	6.09	294.26	$147.61	$43,435	334.4%
Year 17	294.26	$147.61	$3.27	2.22%	9.83%	$963	$963	$0	6.1	300.36	$157.94	$47,439	374.4%
Year 18	300.36	$157.94	$3.44	2.18%	10.54%	$1,033	$1,033	$0	6.11	306.47	$169.00	$51,792	417.9%
Year 19	306.47	$169.00	$3.61	2.14%	11.28%	$1,106	$1,106	$0	6.12	312.59	$180.83	$56,524	465.2%
Year 20	312.59	$180.83	$3.79	2.10%	12.08%	$1,185	$1,185	$0	6.12	318.71	$193.48	$61,666	516.7%

Dividend reinvestment (DRIP) uses each dividend to buy more shares, so the next dividend is paid on a larger position. Starting shares = Investment ÷ Share Price; each payout, New Shares = After-Tax Dividend × Reinvestment % ÷ Price. Use the modes at the top of the calculator for income projections, DRIP vs cash, taxes, an income goal, or a two-investment comparison.

What this tool shows

DRIP projection with payout frequency, contributions, and partial reinvestment
Dividend income now and projected — monthly, quarterly, and annual
DRIP vs taking cash, with the advantage in money and extra shares
After-tax reinvestment with an exempt allowance and per-payout fees
A dividend income goal solver and a two-investment comparison
Yield on cost, total return, annualized return, and cost-basis tracking

Updated 15 June 2026 · Works in any currency

How to read your result

The share count and dividend income both grow with every reinvested payout, because each new share pays dividends of its own — the compounding engine a DRIP is built on. Yield on cost tracks that growth against your original investment, not today's price, so it climbs faster than the market yield the longer you hold and the more the dividend grows. Switch to DRIP vs Cash to see exactly what reinvesting is worth in dollars against simply taking the payouts, or to the Dividend Goal mode to work backward from a target monthly income to the portfolio size and share count you'd need. If you're modeling a taxable account, check the after-tax mode — many countries tax dividends the year they're paid even when reinvested, so the drag compounds too.

DRIP formulas

Dividend per share

DPS = Share Price × Dividend Yield

An annual rate; each payout pays DPS ÷ payouts per year.

Reinvested amount

Reinvested = After-Tax Dividend × Reinvest %

The rest is cash income. Any per-payout fee comes out of this.

Yield on cost

YOC = Annual Dividend Income / Total Invested

Income measured against what you paid, not today’s price.

Required portfolio (goal)

Required = Target Annual Income / Dividend Yield

$500/mo at 4% → $6,000 ÷ 0.04 = $150,000.

Worked example

You invest $10,000 at $50 per share (200 shares) with a 3% dividend yield, 7% price growth, and 5% dividend growth, reinvesting every annual dividend for 20 years. The first-year dividend is 200 × $1.50 = $300. Reinvested payouts lift the share count to about 319 shares, and the position ends near $61,700 — versus about $48,600 (final value plus cash kept) if every dividend had been taken as cash. The reinvestment advantage is roughly $13,000, and yield on cost climbs to about 12.1% — well above the 3% a new buyer would get today, because the dividend has grown while your cost stayed fixed.

Assumptions

Dividend yield converts to a per-share dividend at the starting price; the dividend per share then grows once per year at your dividend growth rate.
The share price compounds monthly at the equivalent of your annual price growth rate; payouts are reinvested at the price in the month they are paid.
The annual tax-exempt allowance (tax mode) is applied pro-rata to each payout; the tax rate is a single flat estimate.
Annualized return treats all invested money as committed for the whole period — it is approximate when contributions exist (a money-weighted IRR would differ).
The cash path counts dividends as kept, not spent or invested elsewhere.

Limitations

Dividends are not guaranteed — companies cut and suspend them, which a steady-growth projection cannot capture.
Real prices are volatile; reinvesting at a smooth monthly price differs from reinvesting at actual market prices.
Tax figures are flat-rate estimates, not a tax calculation — treatment varies by country, account type, and dividend type.
The calculator does not measure risk, dividend safety, valuation, or liquidity, and never recommends any security.

This is a projection, not a forecast. For general growth from contributions without the dividend mechanics, use the investment calculator; for plain compounding, the compound interest calculator.

Frequently asked questions

What is a DRIP?

A dividend reinvestment plan automatically uses each cash dividend to buy more shares of the same investment, often commission-free and in fractional amounts. Your position grows with every payout without any action from you, and the new shares earn dividends of their own — that is the compounding engine this calculator models.

Is DRIP better than taking dividends as cash?

Not automatically. Reinvesting usually produces a larger final value because of compounding, but taking cash is rational when you need income, want to diversify away from the position, or doubt the investment. The DRIP vs Cash mode scores both honestly — the cash path keeps its dividends, and the “advantage” is the difference in total wealth.

Are reinvested dividends taxable?

Often yes. In a regular taxable account, many countries tax dividends in the year they are paid even if you never see the cash — the reinvestment does not defer the tax. In tax-advantaged accounts (pensions, ISAs, 401(k)-type wrappers and similar), dividends usually compound without immediate tax. Rules differ by country, account, and dividend type, so verify your own treatment.

What is yield on cost?

Yield on cost is your annual dividend income divided by the amount you invested, rather than the current market price. It rises when the dividend per share grows, because your cost is fixed. It is a useful progress meter for an income plan but says nothing about whether holding remains better than alternatives available today.

Is a high dividend yield always better?

No. Yield rises when the price falls, so an unusually high yield often signals that the market expects a cut or sees elevated risk. Chasing the highest yield frequently means buying the weakest businesses. This calculator flags double-digit yields and the comparison mode never declares the higher-yield option “better” on yield alone.

Read the guide

For how compounding works when returns are reinvested rather than taken as cash, see How Compound Interest Works With Regular Contributions.

Investment disclaimer

This calculator is for educational estimates only. It is not financial, investment, tax, legal, accounting, or professional advice. Dividend payments, share prices, tax rules, fees, and market returns can change. Dividends are not guaranteed and may be reduced or suspended. Verify assumptions and consult a qualified professional before making financial decisions.

How we calculate · Found an error? email us

Authorship & verification

Written and maintained by Jay Sudha

Formula and examples verified on 15 June 2026
Educational estimate only

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