Calculators
Dividend Reinvestment Calculator
Compare the growth of an investment with dividends reinvested against taking dividends as cash, with dividend and price growth.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Deciding whether to enrol in a DRIP
- Projecting dividend income
- Showing the effect of compounding
- Planning an income portfolio
About this tool
What the Dividend Reinvestment Calculator does
Reinvesting dividends buys more shares, which pay more dividends, so income and value compound. This calculator grows an investment year by year with dividends either reinvested or taken as cash, using your dividend yield, dividend growth and share price growth.
Formula
- Dividend each year = value × current yield
- Reinvested: value = value × (1 + price growth) + dividend
- Yield changes each year by (1 + dividend growth) ÷ (1 + price growth)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Initial investment | $20,000 |
| Starting dividend yield | 3.5% |
| Annual dividend growth | 5% |
| Annual share price growth | 4% |
| Years | 20 |
| Result | Value |
|---|---|
| Value with dividends reinvested | $90,474 |
| Value plus cash taken | $66,969 |
| Extra from reinvesting | $23,506 |
| Dividends in the final year (reinvested) | $3,510 |
How to read the result
The gap between the two lines widens every year; most of the benefit of reinvesting arrives in the later years.
Reinvested dividends are usually still taxable in ordinary accounts, even though you did not receive the cash.
For education only, not investment advice. Past returns do not guarantee future results.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
A dividend reinvestment plan that automatically uses dividends to buy more shares.
In most taxable accounts, yes, in the year they are paid.
Often when you need the income, for example in retirement.
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