A Dividend Reinvestment Plan (DRIP) automatically reinvests dividends to purchase additional shares instead of paying cash.

Why is dividend reinvestment powerful?

Reinvesting dividends allows future dividends to be earned on previously reinvested shares, increasing compound growth.

Can DRIPs increase long-term returns?

Yes. Over decades, reinvested dividends can significantly increase portfolio value.

Do all companies offer DRIPs?

No. Some companies and brokerages offer DRIPs while others do not.

Can I stop dividend reinvestment?

Yes. Most brokers allow you to switch between cash dividends and automatic reinvestment.

In many countries, reinvested dividends are still taxable even though they are automatically invested.

Does this calculator include stock price growth?

Yes. You can estimate growth using an expected annual appreciation rate.

How long should I invest with a DRIP?

The longer your investment period, the greater the impact of dividend compounding.

Can I make regular contributions?

Yes. Combining dividend reinvestment with regular investments can accelerate portfolio growth.

Is a DRIP suitable for beginners?

Many long-term investors use DRIPs because they automate investing and encourage consistent portfolio growth.

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DRIP Calculator

Dividend Reinvestment Plan (DRIP) calculator shows how compounding works when stock dividends are automatically reinvested over 10 to 30 years.

Investment details

Initial investment ($)

Stock price ($)

Dividend yield (%)

Dividend frequency

Years

Annual stock growth (%)

DRIP results

Portfolio value

$35,176

Final shares

90.90

Final price/share

$387

Dividends reinvested

$8,935

Growth multiple

7.0x

Year-by-year

$5,512

$6,077

$6,700

$7,386

$8,143

$8,977

$9,897

$10,911

$12,029

Y10

$13,262

Y11

$14,621

Y12

$16,119

Y13

$17,771

Y14

$19,591

Y15

$21,599

Y16

$23,812

Y17

$26,252

Y18

$28,942

Y19

$31,907

Y20

$35,176

How to use this calculator

1
Enter your details
Fill in the required fields on the left.
2
Review the results
See your calculated results on the right.

Frequently asked questions about DRIP Calculator

What is a DRIP?: A Dividend Reinvestment Plan (DRIP) automatically reinvests dividends to purchase additional shares instead of paying cash.
Why is dividend reinvestment powerful?: Reinvesting dividends allows future dividends to be earned on previously reinvested shares, increasing compound growth.
Can DRIPs increase long-term returns?: Yes. Over decades, reinvested dividends can significantly increase portfolio value.
Do all companies offer DRIPs?: No. Some companies and brokerages offer DRIPs while others do not.
Can I stop dividend reinvestment?: Yes. Most brokers allow you to switch between cash dividends and automatic reinvestment.
Are DRIPs taxable?: In many countries, reinvested dividends are still taxable even though they are automatically invested.
Does this calculator include stock price growth?: Yes. You can estimate growth using an expected annual appreciation rate.
How long should I invest with a DRIP?: The longer your investment period, the greater the impact of dividend compounding.
Can I make regular contributions?: Yes. Combining dividend reinvestment with regular investments can accelerate portfolio growth.
Is a DRIP suitable for beginners?: Many long-term investors use DRIPs because they automate investing and encourage consistent portfolio growth.

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