DRIP calculator
A dividend reinvestment plan, or DRIP, adds each dividend back into the holding. This projection compares that path with taking the cash. There is no separate price-growth rate and no tax drag.
Each year: dividend = starting value × that year’s yield; add it back only if you reinvest; then add the contribution.
Ending value
Enter a starting value, yield, dividend growth, and years to calculate.
How to project dividend reinvestment
- Enter starting value and yield. Starting value in USD and the current dividend yield as a percent, for example 2 for 2%.
- Enter dividend growth, contribution, and years. Dividend growth is a percent. Contribution is added at each year-end. Years is a whole number from 1 to 50.
- Compare with and without reinvestment. The same path is shown both ways. Without DRIP, dividends are cash taken out and the account grows only by contributions.
Frequently asked questions
- How does this DRIP calculator work?
- Each year it pays a dividend on that year’s starting value, optionally adds the dividend back, then adds your contribution at year-end. Yield then grows by the dividend-growth rate. $10,000, 2% yield, 5% dividend growth, $1,200 a year, for 5 years ends at about $17,439.53 with reinvestment and $16,000 in the account without it.
- Does this include price growth or taxes?
- No. The holding grows from reinvested dividends and contributions only. There is no separate price-appreciation rate, and no tax drag. Yield is the current yield on that year’s starting value, not yield on cost.
- Is this investment advice?
- No. The calculator is for general informational and educational purposes only. It is not a recommendation to buy, sell, or hold any security.