Dividend Reinvestment (DRIP) Calculator
Project the value of a dividend stock or fund with dividends reinvested versus paid out, and estimate your annual dividend income.
Your numbers
- Value without DRIP
- $380,702
- DRIP advantage
- $290,641
- Final-year dividend income (DRIP)
- $59,812
- DRIP
- Cash dividends
How the dividend reinvestment (drip) calculator works
Each year dividends = value × yield. With DRIP they buy more shares; without DRIP they accumulate as cash. Price growth and dividend growth are applied annually.
Example
Using the default inputs (Initial investment: $20,000; Annual contribution: $3,000; Dividend yield: 3.2%; Dividend growth / year: 5%; Price growth / year: 5%; …), the calculator returns value with drip of $671,343. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
Is DRIP better?
Reinvesting accelerates compounding, especially over long periods, but you give up spending flexibility.
Are dividends taxed if reinvested?
Yes, in taxable accounts qualified dividends are taxed in the year received.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.