Dividend Reinvestment Calculator – Estimate Growth with DRIP

See how your dividends grow with reinvestments over time.

Stock Price ($)

Number of Shares

Dividend per Share ($)

Annual Dividend Growth Rate (%)

Holding Period (Years)

Monthly Investment Amount ($)

Dividend Reinvestment Calculator – Forecast Passive Income Growth

Ever wondered how powerful dividends really are when reinvested? This calculator was built exactly for that. It helps you see how much wealth you could build over time by reinvesting dividends, contributing monthly, and letting compound growth do its magic.

What is a Dividend Reinvestment Calculator?

This tool simulates a long-term investment strategy where you own dividend-paying stocks and reinvest those dividends instead of withdrawing them. It takes into account:

• 🟢 Current stock price
• 📈 Annual dividend per share
• 💹 Dividend growth rate
• 📆 Holding period in years
• 💵 Monthly contributions
• 📊 Number of shares you currently own

Why is This Calculator Useful?

Dividends are one of the most reliable ways to build wealth over time. Reinvesting them amplifies the effect thanks to compounding. This calculator shows:

• Total dividends received over your investment horizon
• How your dividends grow year after year
• Your final portfolio value
• Capital growth in %

How to Use It?

1. Enter the current stock price
2. Enter how much dividend per share the stock pays
3. Type in how many shares you already own
4. Enter expected dividend growth % per year
5. Set how long you'll hold the investment
6. Add how much money you’ll contribute monthly
7. Click "Calculate" and see the results!

What Do You Get?

Once calculated, you will see:

• ✅ Total dividend income over time
• 📈 Growth rate of those dividends
• 💼 Final portfolio size
• 📊 Capital appreciation
• 📉 A chart showing dividend growth + portfolio value per year

Real-Life Application

Let’s say you have 100 shares of a $50 stock that pays $2 in dividends annually. You invest $300 monthly and the dividend grows 5% each year. Over 15 years, you'll not only get impressive passive income, but also a sizable portfolio due to reinvestment.

FAQ

What is DRIP?

DRIP stands for Dividend Reinvestment Plan – a strategy where dividends are automatically used to buy more shares.

What is the dividend growth rate?

It’s the average annual percentage increase in the dividend payout per share by the company.

Are dividends taxed?

Yes, in most countries dividends are taxable income. Always consult a tax advisor for your region.

Can I use this for ETFs?

Yes. As long as the ETF pays dividends and you have the data, this calculator works the same way.

What’s a good dividend yield?

It depends, but 3-5% is generally considered sustainable. Too high can mean risk. Too low might mean growth.