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Dividend Reinvestment Calculator
Project how reinvested dividends compound your shares and portfolio value over time. Enter your investment and dividend details, then press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Portfolio value over time
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How dividend reinvestment compounds
When you reinvest dividends, each payout buys more shares at the current price. Those new shares earn dividends in the next period, and so on. The calculator runs this year by year, growing the share price and the dividend per share at the rates you choose, so the final value reflects both rising prices and a rising payout.
Toggle reinvestment off to see the difference. Taking dividends as cash still gives you income, but your share count stays flat, so the portfolio grows more slowly. The chart makes the compounding effect easy to see over a long horizon.
A quick example
Invest $10,000 in a stock at $50 a share paying $2 a year, with the dividend and price both growing modestly. Over 20 years of reinvestment, the steady drip of new shares can lift the ending value well above what the same investment would reach without reinvesting. To check a stock's starting yield first, use our dividend yield calculator.
Things to keep in mind
These projections assume steady growth rates, which real markets do not follow. Dividends can be cut and prices can fall. Treat the result as a what-if model, not a forecast. For investor basics, the SEC investor education site is a reliable source. Browse all of our free calculators for more.
Frequently asked questions
What is a DRIP?
DRIP stands for dividend reinvestment plan. Instead of taking your dividends as cash, every payout automatically buys more shares of the same stock. Those extra shares then earn dividends of their own, which compounds your position over time.
How does reinvesting dividends grow my money?
Reinvestment compounds in two ways. Your share count rises because each dividend buys more shares, and many companies also raise their dividend per share each year. Together they can grow a portfolio much faster than taking dividends as cash, especially over long periods.
What is dividend growth?
Dividend growth is the annual rate at which a company increases its dividend per share. A stock paying $2 today with 5% dividend growth pays about $2.10 next year. This calculator lets you set both dividend growth and share price growth to model a realistic scenario.
Are reinvested dividends taxable?
In a taxable account, dividends are generally taxed in the year they are paid even if you reinvest them. In tax advantaged accounts such as an IRA, reinvested dividends typically grow without yearly tax. Check your situation with a qualified tax professional.
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