Dividend Reinvestment Calculator (DRIP)
Simulate the compound growth of dividend reinvestment over time. See how reinvesting dividends accelerates wealth building compared to taking cash.
Calculator Inputs
Investment Disclaimer: This calculator is for educational purposes only. Results are based on assumptions and do not guarantee future returns. Calculations assume no taxes, fees, or transaction costs. Actual returns may vary significantly. This is not financial advice. Consult a licensed financial advisor before making investment decisions.
What is a DRIP (Dividend Reinvestment Plan)?
A Dividend Reinvestment Plan (DRIP) automatically uses cash dividends to purchase additional shares of the same stock. Instead of receiving dividend payments as cash, you accumulate more shares, which then generate more dividends in a compounding cycle.
Benefits of Dividend Reinvestment
- Compound Growth: Each dividend buys more shares, which generate more dividends, creating exponential growth over time.
- Dollar-Cost Averaging: Automatically buy shares at different prices, reducing timing risk.
- No Transaction Fees: Many brokers offer commission-free DRIP programs.
- Passive Wealth Building: Set it and forget it - no manual reinvestment required.
How to Use This Calculator
- Enter a ticker symbol (optional) - We'll auto-fill dividend yield and historical growth rate based on SEC EDGAR data.
- Set your initial investment - How much will you invest upfront?
- Add monthly contributions - How much will you add each month?
- Adjust advanced settings - Fine-tune dividend yield, growth rate, and stock appreciation.
- Choose simulation period - See results over 1-30 years.
- Click Calculate - View projected growth with and without reinvestment.
Data Source
This calculator uses historical dividend data from SEC EDGAR (U.S. Securities and Exchange Commission). Dividend growth rates are calculated from actual company filings (10-K, 10-Q reports) over the past 5-10 years.
Note: This calculator assumes dividends are paid quarterly and reinvested immediately. Results do not account for taxes, fees, or dividend cuts. Past performance does not guarantee future results.