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Investment & Retirement Tool

DRIP Calculator

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

Investment details

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

Y1
$5,512
Y2
$6,077
Y3
$6,700
Y4
$7,386
Y5
$8,143
Y6
$8,977
Y7
$9,897
Y8
$10,911
Y9
$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. 1

    Enter your starting investment

    Input your initial share count or investment amount.

  2. 2

    Set the dividend yield

    Enter the annual dividend yield of the stock or fund.

  3. 3

    Choose your time horizon

    Select how many years you plan to hold and reinvest dividends.

  4. 4

    Review your projected growth

    See how reinvested dividends compound your portfolio value over time versus taking dividends as cash.

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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Embed this calculator on your site

Copy and paste this code into your website's HTML (WordPress, Webflow, custom HTML, etc.) to display this calculator.

<!-- CalculateAway Widget -->
<div class="calculateaway-embed" data-tool="drip" style="width: 100%; max-width: 800px; margin: 0 auto;"></div>
<script src="https://calculateaway.com/api/widget" async></script>