πŸ’Ž Dividend Reinvestment Calculator (DRIP)

See how automatic dividend reinvestment compounds your wealth over time. Enter your initial investment, dividend yield, and growth rates to project decades of passive income growth.

Zero Dependencies Β· Works Offline

πŸ”’ Input Parameters

Lump sum or current portfolio value
Price per share
Current yield (annual dividend/price)
Expected annual dividend increase (conservative: 2-5%)
Expected annual price appreciation (S&P 500 ~7-10%)
Planned investment duration
Additional yearly investment (e.g. $500/mo = $6,000/yr)
Qualified dividend tax rate (US: 0/15/20%)
πŸ“Š Final Portfolio Value
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Including reinvested dividends + appreciation
πŸ“ˆ Final Share Count
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Shares after DRIP accumulation
πŸ’΅ Annual Dividend Income
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Last year's pre-tax dividend
🏦 Total Invested
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Initial + annual contributions
πŸ“Š Total Dividends Earned
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Cumulative dividends received
🎯 After-Tax Net Gain
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Total return minus dividend taxes

πŸ“– DRIP Investment Strategy

Core DRIP Benefits

Automatic compounding: dividends buy more shares β†’ produce more dividends β†’ cycle continues. Commission-free: most brokers offer DRIP at no cost. Fractional shares: fully utilize every dollar of dividends.

Dividend Growth vs High Yield

High yield (4-6%) provides immediate cash flow but slower growth. Dividend growth (starting 2-3% but rising 8-10%/yr) delivers higher total returns long-term. Best strategy: moderate yield (2.5-3.5%) + consistent growth.

Tax Impact

Qualified dividend tax rates: 0%/15%/20% (US). DRIP inside IRA/401k defers taxes. In taxable accounts, annual tax drag on dividends significantly impacts long-term compounding.