Dividend Reinvestment (DRIP) Calculator
Project wealth from reinvested dividends.
Your Inputs
Portfolio value (DRIP)
Shares
vs no DRIP
How to Use This Calculator
2. Set the dividend yield, expected dividend growth and price growth.
3. Choose your time horizon.
The chart compares reinvesting dividends (DRIP) versus taking them as cash.
Calculation Method
Source: Dividend reinvestment compounding model.
Income stock
$25k · 3.5% yield · 20 yr
DRIP ≈ +$60k vs cash
Dividend growth
Higher div growth
Larger DRIP advantage
Long horizon
30+ years
Compounding dominates
Frequently Asked Questions
What is a DRIP?
A Dividend Reinvestment Plan automatically uses your cash dividends to buy more shares, compounding your position over time.
Why does DRIP beat taking cash?
Reinvested dividends buy shares that themselves pay dividends, creating compounding that grows the gap over long horizons.
Are reinvested dividends taxed?
In a taxable account, yes — reinvested dividends are still taxable in the year received. Tax-advantaged accounts defer or avoid this.
What dividend yield should I use?
Use the stock’s current yield. Broad dividend indices have historically yielded around 2–4%.
Are these results guaranteed?
No. Dividends can be cut and prices fall. This is an educational projection based on your assumptions.
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Last updated: May 24, 2026