Dividend Reinvestment Calculator (DRIP)

See how reinvesting dividends (DRIP) compounds your wealth vs taking cash payouts.

Portfolio Details

Initial Investment ($)

Annual Additional Investment ($)

Dividend Yield (%)

Annual Dividend Growth (%)

Stock Price Appreciation (%/year)

Investment Period (Years)

Reinvest Dividends (DRIP)

DRIP vs No DRIP — Final Portfolio Value

Key Metrics (With DRIP)

Year-by-Year Breakdown

Year	Portfolio Value	Annual Dividend	Shares Owned	Total Invested	Total Return

Understanding DRIP

What is DRIP? A Dividend Reinvestment Plan automatically uses your cash dividends to buy more shares of the same stock. No brokerage fees, fractional shares allowed.

Why it works: Reinvested dividends buy more shares, which pay more dividends, which buy even more shares. This compound effect is the engine of long-term wealth.

Real example: $10,000 in a 3.5% yield stock growing 7%/year — with DRIP you'd have ~$76K after 20 years vs ~$60K without. That's a 27% difference from simply checking a box.

Tax note: Reinvested dividends are still taxable in the year received in most countries. Holding DRIP stocks in a Roth IRA or 401k eliminates this drag.