This free DRIP calculator shows how reinvesting your dividends compounds over time compared with taking them as cash. Enter your investment, yield, and growth assumptions and see both paths on a chart. Educational only, not advice.
How to use the DRIP calculator
- Enter your initial investment, the dividend yield, and how many years you plan to hold.
- Add expected dividend growth and share price growth, plus any monthly contribution.
- Compare the with-reinvestment and without-reinvestment lines on the chart.
How the model works
- Each year it adds your contributions, applies price growth, then pays a dividend
- With DRIP, the dividend is reinvested and keeps compounding
- Without DRIP, the same dividend is set aside as cash and does not compound
- The gap between the two is the value of reinvesting
DRIP FAQ
What is DRIP investing?
DRIP stands for dividend reinvestment plan. Instead of taking dividends as cash, you use them to buy more shares automatically, which grows your future dividends and compounds your returns.
Is reinvesting dividends worth it?
Over long horizons reinvested dividends can be a large share of total return because of compounding. This tool lets you see the difference for your own assumptions.
Are these projections guaranteed?
No. They are estimates based on the growth rates you enter. Real yields, prices, and dividends vary, so treat the output as a planning guide.
Educational only, not financial advice.