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DRIP calculator (dividend reinvestment)

A DRIP (dividend reinvestment plan) uses each dividend to buy more shares, so every later dividend is paid on more shares. Enter a share price, annual dividend, payout frequency and growth assumptions to see your shares, value and dividend income year by year, with and without reinvesting.

Value at end–
Yearly dividend income at end–
Monthly income at end–
Shares at end–
Total dividends received–
Total you invested–

How dividend reinvestment compounds

On each payout date the calculator pays shares × (annual dividend ÷ payouts per year). With DRIP on, that cash buys new shares at the current price. Dividend growth raises the dividend per share each year and price growth changes the share price gradually. Switch DRIP off to compare taking the cash. Results are before taxes and fees.

Common questions

Is DRIP better than taking dividends as cash?

Reinvesting buys more shares, so income and value usually grow faster over time if the share price holds up. Taking cash gives income now. Both are taxed the same way in a taxable account.

Do I pay tax on reinvested dividends?

Yes. In a regular brokerage account, reinvested dividends are taxable in the year paid, just like cash dividends. In an IRA or 401(k) they are not taxed when paid.

What dividend growth rate should I use?

Use 0% for a conservative estimate. Some companies have raised dividends steadily for decades, but there is no guarantee.

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Last reviewed October 31, 2026. This calculator gives estimates for education and planning only. Results depend entirely on the numbers you enter and the assumptions stated on this page; they are not investment, tax or trading advice, and real results will differ.