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Dividend Reinvestment Calculator

Project how reinvesting dividends compounds your portfolio versus taking the cash.

Updated June 2026 · Editorial standards

Your investment

$
$
%
%
%
Reinvest dividends
Final value
$161,964
Total dividends
$63,643
Value of reinvesting
$45,780
Without reinvesting
$116,185

Reinvesting your dividends grows this portfolio to $161,964 after 20 years — $45,780 more than taking dividends as cash ($116,185 including the cash received).

Portfolio growth by source

Portfolio composition — year 20

Year-by-year breakdown

YearPortfolio valueTotal dividends
1$12,100$300
2$14,407$681
3$16,948$1,158
4$19,754$1,746
5$22,859$2,467
6$26,306$3,342
7$30,142$4,399
8$34,423$5,672
9$39,214$7,197
10$44,592$9,023
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the dividend reinvestment (drip) calculator?

In short

Dividend reinvestment (DRIP) means using each dividend payment to buy more shares instead of taking cash, so future dividends are paid on a larger share count. The compounding effect is large: $10,000 invested with $1,200 added annually at a 3% dividend yield, 5% dividend growth, and 6% price appreciation grows to roughly $120,000 in 20 years with dividends reinvested — tens of thousands more than taking the dividends as cash.

This DRIP calculator projects your portfolio year by year with dividends either reinvested or taken as cash. It separates the final value into contributions, reinvested dividends, and price growth, and shows the exact dollar 'value of reinvesting' — the gap between the two strategies.

How to use this calculator

  1. 1Enter your initial investment and how much new money you'll add each year.
  2. 2Set the current dividend yield of your portfolio or fund.
  3. 3Set how fast you expect the dividend to grow each year (dividend growth rate).
  4. 4Set the expected annual share price appreciation, excluding dividends.
  5. 5Toggle 'Reinvest dividends' on or off and compare the final values.

The formula

D=V×yield
V=V×(1+g)+C+D
Each year: dividends D = portfolio value × dividend yield. With reinvestment, next year's value = value × (1 + price growth) + contributions + D. The yield itself grows by the dividend growth rate each year.
V
— Portfolio value
D
— Annual dividends = V × yield
g
— Share price appreciation rate
C
— Annual contribution
yield
— Dividend yield, growing by the dividend growth rate each year

Worked example

The scenario

$10,000 initial investment, $1,200 added annually, 3% dividend yield, 5% dividend growth, 6% price appreciation, 20 years.

gives

The result

With dividends reinvested the portfolio reaches roughly $120,000. Taking dividends as cash leaves about $85,000 of total wealth (portfolio plus cash dividends received) — reinvesting adds tens of thousands through compounding.

Common use cases

  • Projecting long-term growth of a dividend stock or ETF position with DRIP enabled
  • Quantifying exactly how much taking dividends as income costs you in final wealth
  • Modeling dividend growth investing with rising payouts (dividend aristocrats)
  • Planning when a portfolio's dividend income alone could cover living expenses
  • Comparing a high-yield, low-growth fund against a low-yield, high-growth fund

Limitations & assumptions

  • Assumes smooth, constant rates — real dividends get cut in recessions and prices fluctuate.
  • Taxes on dividends (even reinvested ones, in taxable accounts) are not modeled.
  • Dividend yield is applied to total portfolio value annually rather than per share and per quarter.
  • Does not account for fees, fractional share availability, or DRIP discounts some plans offer.

Frequently asked questions

A DRIP automatically uses each dividend payment to purchase additional shares (including fractional shares) instead of paying cash. Owning more shares means the next dividend payment is larger, creating a compounding loop. Most brokerages offer free automatic dividend reinvestment, and some company-sponsored DRIPs even offer shares at a 1–5% discount.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.