Dividend Reinvestment (DRIP) Calculator

It projects a portfolio's value and yearly dividend income when every dividend is used to buy more shares.

Initial investment

The amount you start with.

Dividend yield

Yearly dividends as a percent of price.

Annual dividend growth

How fast you assume the dividend per share grows each year.

Annual price growth

How fast you assume the share price grows each year.

Years

How long to project.

Ending value is the projected portfolio value. Final-year dividend income is the dividends paid in the last year. Yield on cost compares that income with your original investment.

$10,000 at a 3% yield pays about $300 in year one. Reinvesting it buys more shares, which then pay their own dividends, so income grows faster than the dividend rate alone.

• Assuming dividends never get cut.
• Ignoring taxes on dividends in a taxable account.
• Using a very high yield without asking whether it is sustainable.