Financial

Free Dividend Reinvestment (DRIP) Calculator

Portfolio growth with dividends reinvested vs taken as cash.

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Inputs

$
%
%

Result

Value with DRIP

$37,337.60

Value without reinvesting (cash dividends)$30,948.37
Final share count with DRIP311.59
DRIP advantage$6,389.22

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Estimates only. Verify with a professional for consequential decisions.

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Short answer

Portfolio growth with dividends reinvested vs taken as cash.

What is the Dividend Reinvestment (DRIP) Calculator?

Portfolio growth with dividends reinvested vs taken as cash.

How does the Dividend Reinvestment (DRIP) Calculator work?

Enter the inputs above and read the result.

Formula

Shares grow each year by Dividend ÷ Price; Price compounds at g

Variables

  • yDividend yield
  • gPrice growth rate

Explanation

Reinvested dividends buy additional shares, compounding both income and price growth.

Examples

Applications

    Advantages

      Limitations

        Common mistakes

          Tips

            Related concepts

            The Dividend Reinvestment (DRIP) Calculator sits inside the Finance Calculators hub, in the investing & retirement cluster. Growing capital and planning for withdrawal. Understanding the terms below makes the output easier to interpret and easier to compare against neighbouring measures.

            compound growthasset allocationwithdrawal rateyielddividend reinvestmentrisk-adjusted return

            Practical use cases and industry applications

            Understanding Dividend Reinvestment (DRIP)

            Portfolio growth with dividends reinvested vs taken as cash. Within finance calculators, dividend reinvestment (drip) belongs to the investing & retirement cluster, where it shares terminology and assumptions with closely related tools.

            Learning how dividend reinvestment (drip) is calculated

            Reinvested dividends buy additional shares, compounding both income and price growth. Working through the variables one at a time — y, g — makes the result reproducible by hand and easier to sanity-check.

            Using dividend reinvestment (drip) to make a decision

            Because outputs depend on the assumptions you enter, run more than one scenario before committing to a figure.

            How dividend reinvestment (drip) compares with related measures

            compound growth, asset allocation, withdrawal rate, yield all describe adjacent aspects of investing & retirement. Comparing this calculator's output against those measures — using the related tools listed on this page — prevents a single metric from being read in isolation.

            Frequently asked questions

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