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Model the power of DRIP investing — see how reinvesting dividends compounds your wealth over time.
Final Portfolio Value
$66,475
Total value including dividends: $66,475
Total Dividends Received
$29,274
Total Return
$56,475
CAGR
9.93%
Dividends Reinvested
$29,274
DRIP vs No-DRIP Comparison
With DRIP
$66,475
CAGR 9.93%
Without DRIP
$43,633
CAGR 7.64%
DRIP advantage: $22,843 more over 20 years
| Year | Portfolio Value | Annual Dividend | Total Dividends | Shares |
|---|---|---|---|---|
| Year 5 | $15,317 | $581 | $2,337 | 1.2001 |
| Year 10 | $24,139 | $1,054 | $6,539 | 1.4819 |
| Year 15 | $39,309 | $1,976 | $14,327 | 1.8908 |
| Year 20 | $66,475 | $3,844 | $29,274 | 2.5054 |
Dividend Reinvestment Calculator (DRIP) simulates annual portfolio growth using price appreciation plus DRIP compounding, where dividends buy additional shares at the current price each year, and compares the ending value against a no-reinvestment scenario.
Dividend Reinvestment Calculator (DRIP) is a high-performance utility designed to help users streamline their workflow. Built with modern web technologies, it ensures fast processing times and high-quality outputs directly in your browser.
Each year: portfolio value grows by price appreciation rate; dividend income = portfolio value × current yield; if DRIP, new shares are purchased at current price. Yield applied to full portfolio value (not per-share yield expansion). CAGR = (final portfolio value / initial)^(1/years) − 1. Tax treatment of dividends is not modeled; in taxable accounts dividends are taxed annually even when reinvested.
DRIP (Dividend Reinvestment Plan) means automatically using dividend payments to buy more shares instead of taking cash. Over decades, this dramatically increases returns through compounding — often adding 20–40% more total return vs taking dividends as cash.
The S&P 500 average dividend yield is ~1.3–1.5% in 2026. High-dividend ETFs (like VYM, SCHD) yield 3–4%. Individual high-yield stocks can yield 5–10%, but very high yields sometimes signal underlying business problems ('yield trap').
Historically, reinvested dividends account for roughly 40% of total S&P 500 returns over long periods. A $10,000 investment with 3.5% yield and 5% appreciation: with DRIP it grows to ~$76,000 in 20 years; without DRIP, ~$53,000 — a 43% difference.
Yes. Even in a taxable account, reinvested dividends are taxed in the year received (qualified dividends at long-term capital gains rates; non-qualified at ordinary income rates). In a Roth IRA or 401(k), dividends grow tax-free.
Project investment growth over any time horizon with contributions, CAGR, and inflation-adjusted returns.
Calculate how money grows with compound interest — lump sum plus regular contributions, any compounding frequency.
Compare Roth vs Traditional IRA growth and project your retirement balance with 2026 contribution limits.