Dividend Reinvestment (DRIP) Calculator
Free online dividend reinvestment (DRIP) calculator. Model an income portfolio with an initial amount, starting dividend yield, annual dividend growth and share-price growth, and see how reinvesting dividends compounds over time versus taking them as cash. Simplified annual model for education — not investment advice. InvestingRuns locally
Use this tool
How to use
- Enter the starting amount, current dividend yield and the years.
- Set assumed dividend growth and share-price growth (try conservative values).
- Leave DRIP on to reinvest dividends, or turn it off to collect them as cash.
Frequently asked questions
What is a DRIP?
A Dividend Reinvestment Plan uses each dividend to buy more shares automatically, so future dividends are paid on a growing number of shares.
Why does reinvesting grow so much?
It compounds: dividends buy more shares, which pay more dividends, which buy still more shares — the same snowball effect as compound interest.
How accurate is this?
It uses a simplified yearly model with constant growth rates. Real dividends can be cut and prices fluctuate, so treat the result as a scenario, not a forecast.