Dividend Reinvestment (DRIP) Calculator
Project share growth from dividend reinvestment using yield and payout frequency (constant price estimate).
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Project growth from reinvesting dividends
Reinvesting dividends buys more shares, which pay more dividends, which buy more shares, a compounding engine. This calculator projects share growth from dividend reinvestment using the yield and payout frequency, so you can see the compounding effect over time.
Why reinvesting compounds so powerfully
Taking dividends as cash gives you a steady income but a static share count. Reinvesting them instead buys more shares each payout, so your next dividend is larger, and the effect snowballs. Over decades, a significant part of a stock investment’s total return comes from reinvested dividends compounding, not just price appreciation. The payout frequency matters because more frequent reinvestment compounds slightly faster. Seeing the projection makes the case for reinvesting concrete.
The compounding of reinvestment
This is an estimate for planning from the figures you enter, not financial advice, and real outcomes depend on rates and rules that change. Confirm anything important with the relevant institution or a qualified adviser. The calculation runs entirely in your browser, so your financial figures are never uploaded.
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Frequently Asked Questions
What is a DRIP?
A dividend reinvestment plan: instead of taking dividends as cash, they buy more shares, which pay more dividends, compounding your holding over time.
Why is reinvesting so powerful?
Because each reinvested dividend buys more shares, so the next dividend is larger, and the effect snowballs. Much of long-run stock return comes from this compounding.
Does payout frequency matter?
Yes, slightly. More frequent reinvestment compounds a little faster, since dividends are put back to work sooner.
What does the projection assume?
A steady yield and reinvestment at the payout frequency you set. Real dividends and prices vary, so treat it as an estimate of the compounding effect.
Is this financial advice?
No. It is a projection for planning. Actual returns will differ.
Privacy & Security
Calculated locally in your browser. Use as an estimate.
How to Use
Enter shares, price, yield, and years to estimate DRIP growth.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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