Dividend Reinvestment Plan (DRIP) Calculator

Use this DRIP calculator to estimate how reinvesting dividends may change your shares, portfolio value and future dividend income. It models scheduled dividend payments and fractional-share purchases instead of treating dividend yield as a generic monthly return.

Investment assumptions

Initial investment The amount invested at the starting share price.

Starting share price Used to calculate starting and purchased shares.

Monthly contribution Invested every month at that month's share price.

Starting dividend yield (%) Sets the starting annual dividend per share.

Annual share-price growth (%) Price growth only, before separately entered fees.

Annual dividend growth (%) Growth of dividend per share, not dividend yield.

Dividend payment frequency Payments are assumed at the end of each period.

Investment horizon (years) Whole years from 1 to 100.

Advanced settings (currency, taxes, fees and timing)

Currency Formatting only; no exchange-rate conversion.

Contribution timing Determines when new money starts participating.

Dividend tax rate (%) Applied to each gross dividend before reinvestment.

Annual investment fee (%) Use 0 if your share-price growth already includes fees.

Annual inflation (%) Used only for today's-money purchasing power.

Projection results

Final portfolio value —

Final shares owned —

Estimated annual dividend income (gross) —

Total contributions—

Gross dividends received—

Dividend tax withheld—

Net dividends reinvested—

Value in today's money—

Detailed breakdown

Estimated share-price gain—

Fees deducted—

Forward dividend income ÷ contributions—

Cash alternative ending value—

DRIP difference versus cash—

Portfolio projection

DRIP value Today's-money value Contributions

Annual breakdown

Year	Share price	Shares	Portfolio value	Gross dividends	Net dividends	Fees	Today's-money value

How this DRIP calculator works

The calculator converts the starting yield into a starting annual dividend per share. On each scheduled payment date, it calculates the gross dividend from the shares owned, subtracts the selected tax rate, and uses the remaining cash to buy fractional shares at that period's estimated price.

Share-price and dividend-growth assumptions are annual effective rates, converted into monthly growth.
Dividend payments occur at the end of each selected payment period. Fractional shares are assumed to be available with no trading commission.
The fee is deducted monthly and is separate from share-price growth. Set it to zero if your growth assumption is already net of fees.
The cash comparison assumes net dividends are held as non-interest-bearing cash instead of being reinvested.
Inflation changes only the today's-money result; it does not change the nominal portfolio projection.

Starting annual dividend per share = starting share price × starting dividend yield

Dividend reinvestment plan questions

What is a dividend reinvestment plan (DRIP)?

A dividend reinvestment plan uses cash dividends to purchase additional shares rather than paying the dividends out as spendable cash. When fractional shares are available, the full net dividend can usually be reinvested.

What is the difference between dividend yield and dividend growth?

Dividend yield measures annual dividend income relative to the current share price. Dividend growth measures how the dividend paid per share changes over time. They are separate assumptions in this calculator.

What does this DRIP calculator include?

The projection can include monthly contributions, share-price growth, dividend growth, payment frequency, dividend tax, investment fees and inflation. It also compares reinvesting net dividends with holding them as non-interest-bearing cash.

Are the calculated results predictions?

No. The results are mathematical illustrations based on the assumptions entered. Actual share prices, dividends, taxes, fees and reinvestment prices can differ materially.

Important limitations

This is an educational estimate, not investment, tax or financial advice. Real share prices and dividends do not grow smoothly, dividends may be reduced or suspended, tax treatment varies, and actual reinvestment prices and fees will differ. The calculator does not model exchange rates, commissions, bid–ask spreads or cash interest. See the full InvestCalcs disclaimer.