Dividend Reinvestment (DRIP) Calculator

Compare portfolio growth with and without dividend reinvestment, including dividend growth rate.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Initial investment ($)

Dividend yield (%)

Annual price growth (%)

Years held

Dividend growth rate (%)

Tab to move between fields

Results

With DRIP ($)

$69,743.00

≈ 6 years of state college

Without DRIP: stock ($)$26,533.00

Without DRIP: cash dividends ($)$17,678.00

DRIP advantage ($)$25,532.00

DRIP CAGR (%)10.2%

Total DRIP return ($)$59,743.00

How to Use This Calculator

Enter your initial investment amount and the stock's current dividend yield percentage.
Set the expected annual price growth rate and dividend growth rate.
Input the number of years you plan to hold the investment.
Compare DRIP Final Value versus No-DRIP Stock Value to see how much more reinvesting dividends compounds over time.
Review DRIP CAGR and Total DRIP Return to assess whether dividend reinvestment fits your long-term strategy.

How the result changes with Years held

Years held	With DRIP ($)
5.9	$16,378.00
18	$54,842.00
33	$500,508.00
45	$7,904,757.00

What each input means

Initial investment ($): Starting investment amount.
Dividend yield (%): Current annual dividend yield.
Annual price growth (%): Expected annual stock price appreciation.
Years held: Investment time horizon.
Dividend growth rate (%): Annual rate of dividend increase.

What each result means

With DRIP ($): Portfolio value with dividends reinvested.
Without DRIP: stock ($): Stock value without reinvestment.
Without DRIP: cash dividends ($): Total dividends received as cash.
DRIP advantage ($): Extra wealth from dividend reinvestment.
DRIP CAGR (%): Compound annual growth rate with DRIP.
Total DRIP return ($): Total profit with reinvestment.

How this is calculated

Worked example, using the default values

Identify Input Parameters
4 parameters
Initial investment ($) = 10000, Dividend yield (%) = 3, Annual price growth (%) = 5, Years held = 20 = 5 input(s) provided
Calculate With DRIP
69743 = $69,743
Calculate Without DRIP: stock
26533 = $26,533
Calculate Without DRIP: cash dividends
Without DRIP: cash dividends
17678 = $17,678