Dividend Reinvestment (DRIP) Calculator
Reinvesting dividends quietly buys you more shares every year, and those shares pay their own dividends. Drag the sliders to set your shares, yield, and growth rates, then watch the gap between reinvesting and cashing out widen over the years.
How this math works
Each year your dividends buy more shares at the current price, the dividend paid per share grows, and the share price itself grows. The reinvested shares then earn dividends of their own, which is where the compounding comes from.
The cash version assumes you pocket every dividend and keep the same share count, so its growth comes only from the rising price. The calculator shows both ending values side by side so the difference is clear.
Common questions
What does DRIP mean?
DRIP stands for dividend reinvestment plan. Instead of receiving dividends as cash, they are automatically used to buy more shares, often with no commission.
Does this account for taxes?
No. In a taxable account dividends are usually taxed in the year they are paid even when reinvested, which would lower the real result. Inside a retirement account that tax does not apply.
Are the growth rates guaranteed?
No. Dividend growth and price growth are estimates you choose, and real markets vary year to year. Use the sliders to test conservative and optimistic cases.
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