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, total wealth is the account plus cash dividends. 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. Without reinvestment the account is $16,000 plus $1,383.28 cash, or $17,383.28 total wealth. The extra from reinvestment in that example is $56.25.
- 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.
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