About the DRIP Calculator
A dividend reinvestment plan, or DRIP, uses the dividends you receive to buy more shares, which then pay dividends of their own. Over many years this compounding adds up. This calculator compares two paths for the same investment: reinvesting all the dividends, or taking them as cash. It shows the shares, the value and the income at the end. Type the amount, the share price, the dividend yield, the price and dividend growth and the years and the dividend reinvestment appears at once, with a few related figures underneath, and you can copy the result with one tap. The sums run in your browser, so nothing you enter is uploaded.
Updated October 2026
How to use the DRIP Calculator
- 1Enter the amount, the share price, the dividend yield, the price and dividend growth and the years.
- 2Pick the units or options from the menus if the dividend reinvestment tool offers them.
- 3Read the dividend reinvestment in the large result box.
- 4Look at the extra rows for related figures.
- 5Press Copy result to keep the answer.
When you need the dividend reinvestment
Income investors use it to see how much the compounding adds, and to compare a growth plan with an income plan. Planners use it to show clients the effect of leaving dividends invested.
The effect grows with time, the dividend yield and the growth of the share price. At a low yield and a short time, the difference is small. The tool also shows the dividend income in the last year for each path.
How the dividend reinvestment is worked out
Each year the dividend per share grows, income = shares × dividend per share, and with reinvestment the income buys more shares at that year's price. Without reinvestment it is kept as cash. Investing 10,000 at 100 per share with a 4 percent yield, with the price and the dividend each growing 5 percent a year, 10 years later gives 145.3 shares worth 23,674 if dividends are reinvested. Without reinvestment, 100 shares are worth 16,289 plus 5,031 of cash dividends, a total of 21,320.
Every answer on this page comes from that one rule, so you can check any result by hand with a calculator. The figures shown underneath, such as other units, are conversions of the same answer.
- Two paths compared
- Yearly steps
- Income in the last year
Mistakes to avoid with dividend reinvestment
The model uses yearly steps, buys shares at the end-of-year price and ignores tax, fees and fractional-share limits. Growth rates are assumptions, not forecasts: real prices and dividends rise and fall. Use cautious numbers.
On phone and computer
On a phone, type into the boxes one after another and read the dividend reinvestment underneath; Copy result puts it on the clipboard for a message or a note. On a computer the inputs sit on the left and the answer on the right, so you can change one figure and watch the dividend reinvestment move. The drip calculator works the same on both. Reinvesting ties into other tools. Check income with Dividend Yield Calculator, see growth with Compound Interest Calculator and Investment Calculator, and turn results into a yearly rate with CAGR Calculator.
Features
- Compounding needs time
- Growth rates are assumptions
- Tax rules differ
- Clear messages when the dividend reinvestment inputs make no sense
- Copy the result with one tap
- Private: nothing is uploaded
Frequently asked questions
How do I calculate dividend reinvestment?
Each year the dividend per share grows, income = shares × dividend per share, and with reinvestment the income buys more shares at that year's price. Without reinvestment it is kept as cash. Investing 10,000 at 100 per share with a 4 percent yield, with the price and the dividend each growing 5 percent a year, 10 years later gives 145.3 shares worth 23,674 if dividends are reinvested. Without reinvestment, 100 shares are worth 16,289 plus 5,031 of cash dividends, a total of 21,320.
What is the formula for dividend reinvestment?
Each year the dividend per share grows, income = shares × dividend per share, and with reinvestment the income buys more shares at that year's price. Without reinvestment it is kept as cash. The drip calculator applies it exactly and rounds only the displayed answer to six significant figures.
What is the difference between a DRIP and cash?
With a DRIP, dividends buy more shares automatically. With cash they are paid to you to spend or invest elsewhere.
Does reinvesting always win?
Not always, but when the price rises over time, the extra shares add up. If the price falls, reinvesting buys more shares at lower prices but also loses more value.
Are dividends taxed when reinvested?
In many countries, yes, even though you did not receive the cash. Check your local rules.
Is this drip calculator free and private?
Yes. It is free, needs no account and runs in your browser, so the numbers you type are not uploaded or stored.