Dividend Reinvestment (DRIP) Calculator

Project share count, dividend income, and yield-on-cost over multi- decade horizons under a Dividend Reinvestment Plan. Each dividend payout buys additional shares at the prevailing price; dividends per share compound at the dividend growth rate.

Last reviewed Apr 27, 2026 · SN

For information only — not investment, financial, or tax advice. This calculator estimates results based on the inputs you provide. It does not constitute professional advice and infoz.com is not a CPA, EA, attorney, or registered investment adviser. Tax laws change. Individual circumstances vary. Consult a qualified professional licensed in your jurisdiction before making any financial decision.

Final portfolio value (Year 20)

$32,782

169.43 shares at $193.48 · Yield-on-cost 17.11%

Initial investment: $5,000
Total dividends (gross): $9,103
Total dividends (after tax): $7,738
Capital appreciation: $20,045

Year-by-year

Year	Shares	Div / sh	Div income	Reinvested	End shares	Value
1	100	$2.00	$200.00	+3.18	103.18	$5,520
2	103.18	$2.10	$216.67	+3.22	106.39	$6,091
3	106.39	$2.21	$234.60	+3.26	109.65	$6,716
4	109.65	$2.32	$253.87	+3.29	112.94	$7,402
5	112.94	$2.43	$274.57	+3.33	116.27	$8,154
6	116.27	$2.55	$296.79	+3.36	119.63	$8,977
7	119.63	$2.68	$320.64	+3.39	123.03	$9,878
8	123.03	$2.81	$346.22	+3.43	126.45	$10,863
9	126.45	$2.95	$373.66	+3.46	129.91	$11,942
10	129.91	$3.10	$403.06	+3.48	133.39	$13,120
11	133.39	$3.26	$434.56	+3.51	136.9	$14,408
12	136.9	$3.42	$468.29	+3.53	140.44	$15,814
13	140.44	$3.59	$504.41	+3.56	143.99	$17,350
14	143.99	$3.77	$543.04	+3.58	147.57	$19,026
15	147.57	$3.96	$584.37	+3.6	151.18	$20,855
16	151.18	$4.16	$628.56	+3.62	154.79	$22,849
17	154.79	$4.37	$675.79	+3.64	158.43	$25,023
18	158.43	$4.58	$726.26	+3.65	162.08	$27,392
19	162.08	$4.81	$780.15	+3.67	165.75	$29,972
20	165.75	$5.05	$837.69	+3.68	169.43	$32,782

How this calculator works

One step per year. Dividend income is computed on the start-of-year share count using the year's dividend per share, taxed at the entered rate, and reinvested at the year-end price.

Compute year's dividend income
income = startShares × dividendPerShare.
Apply dividend tax
afterTax = income × (1 − taxRate).
Grow the price one year
price ← price × (1 + priceGrowthRate).
Reinvest
If enabled, sharesPurchased = afterTax / newPrice; shares ← shares + sharesPurchased.
Grow next year's dividend per share
divPerShare ← divPerShare × (1 + dividendGrowthRate).

income_t = shares_{t-1} × divPerShare_t afterTax_t = income_t × (1 − taxRate) price_t = price_{t-1} × (1 + priceGrowth) shares_t = shares_{t-1} + afterTax_t / price_t (if reinvesting) divPerShare_{t+1} = divPerShare_t × (1 + divGrowth)

Worked example: 100 shares @ $50 ($5,000), $2 div/sh, 5% div growth, 7% price growth, 20 years, 15% tax

Year 1: dividend $200, after tax $170, year-end price $53.50 → buys 3.18 shares. Year 2: 103.18 shares × $2.10 div = $216.68, after tax $184.18, price $57.25 → +3.22 shares. ... After 20 years (compounding both share count and div/sh): ≈ 200+ shares, ≈ $400+ annual dividend income, portfolio ≈ $30k+ Yield-on-cost grows from 4% (start) toward double digits. Exact figures are computed in the table below — actual ranges depend on the entered growth and price assumptions.

Sources & methodology

Every numeric input to this calculator traces back to one of the following authoritative documents.

SEC — Investor Bulletin: Dividend Reinvestment Plansprimary · accessed 2026-04-27
Investor.gov — Time Value of Moneysecondary · accessed 2026-04-27

Frequently asked questions

What is a DRIP?: A Dividend Reinvestment Plan automatically uses each dividend payout to buy additional shares of the same stock, often without commission. Over decades the share count compounds, and at constant or growing dividend per share, dividend income compounds along with it.
How is the calculator's reinvestment timing simplified?: The calculator reinvests dividends once per year at the year-end price. Real DRIPs reinvest at each pay date (typically quarterly), which produces slightly higher long-term outcomes when the price is rising. The annual approximation is within a few percent for typical assumptions.
Are taxes included?: Yes — apply your dividend tax rate as a single field. Set 0% if the position is held in a tax-advantaged account (IRA, Roth, 401(k)). For qualified dividends in a US taxable brokerage account, common rates are 0% / 15% / 20% based on income; ordinary dividends use marginal rates.
Why does yield-on-cost grow over time?: Yield-on-cost = current annual dividend ÷ original investment. Two things push it up: (1) dividend per share grows at the dividend growth rate; (2) under DRIP, share count grows from reinvestment. Both effects compound. Mature dividend growers can reach 10%+ yield-on-cost after 20 years even when current yield is 3%.
What's missing from this model?: Real-world drag: brokerage commissions on non-DRIP fees, fractional-share rounding, dividend cuts (companies sometimes cut), special dividends, tax withholding on foreign stocks, FX fluctuations on ADRs, sector concentration risk, and the fact that high-yield stocks often turn out to be value traps. The calculator is deterministic; markets are not.

Important disclaimers

No professional advice. This calculator is provided for informational and educational purposes only and does not constitute investment, financial, or tax advice. infoz.com is operated by Netlink BVI Ltd, which is not a certified public accountant, enrolled agent, attorney, registered investment adviser, or licensed financial professional in any jurisdiction. Use of this calculator does not create any professional, fiduciary, or advisory relationship.

No warranties. Results are best-effort estimates based on the inputs you provide and the data sources cited. Tax law and financial regulations change without notice; data may be revised, withdrawn, or superseded between releases. We make no warranty, express or implied, that the result is accurate, current, complete, or suitable for your situation.

No liability. To the maximum extent permitted by law, infoz.com, Netlink BVI Ltd, and the authors disclaim liability for any direct, indirect, consequential, or incidental loss arising from use of this calculator or reliance on its output. You assume all risk of your reliance on the result.

Assumptions baked in:

Dividend per share grows at a constant rate; real-world growth is variable.
Stock price grows at a constant rate; real-world price is volatile.
Reinvestment is annual at year-end price; commissions and fractional-share rules vary by broker.
Dividend tax rate is applied at the moment dividends are paid.
All figures are in the same currency; FX adjustments for ADRs not modeled.

What this calculator does NOT cover:

Dividend cuts or eliminations.
Special / one-time dividends and return-of-capital distributions.
Brokerage commissions, account fees, ADR fees.
Tax-advantaged account treatment (IRA, Roth, 401k) — set tax rate to 0% to approximate.
Qualified vs ordinary dividend treatment under US tax code.
Foreign dividend withholding tax (e.g., 30% on Swiss, 15% with treaty on Canadian).
Capital gains tax on eventual sale.
Sector / single-stock concentration risk.
Sequence-of-returns risk — a sustained drawdown drastically alters reinvestment math.
Stock split, spin-off, merger, and other corporate-action effects.

Talk to a professional. For decisions that involve real money — filing a return, structuring compensation, choosing an investment strategy — consult a qualified, licensed professional who can review your full circumstances. The cost of one consultation is almost always less than the cost of a wrong decision.

See the full site-wide legal disclaimer and terms for additional notices, including AI-assisted content disclosures and third-party data attribution.

Year

Div / sh

Div income

Reinvested

End shares

Value

100

$2.00

$200.00

+3.18

103.18

$5,520

103.18

$2.10

$216.67

+3.22

106.39

$6,091

106.39

$2.21

$234.60

+3.26

109.65

$6,716

109.65

$2.32

$253.87

+3.29

112.94

$7,402

112.94

$2.43

$274.57

+3.33

116.27

$8,154

116.27

$2.55

$296.79

+3.36

119.63

$8,977

119.63

$2.68

$320.64

+3.39

123.03

$9,878

123.03

$2.81

$346.22

+3.43

126.45

$10,863

126.45

$2.95

$373.66

+3.46

129.91

$11,942

129.91

$3.10

$403.06

+3.48

133.39

$13,120

133.39

$3.26

$434.56

+3.51

136.9

$14,408

136.9

$3.42

$468.29

+3.53

140.44

$15,814

140.44

$3.59

$504.41

+3.56

143.99

$17,350

143.99

$3.77

$543.04

+3.58

147.57

$19,026

147.57

$3.96

$584.37

+3.6

151.18

$20,855

151.18

$4.16

$628.56

+3.62

154.79

$22,849

154.79

$4.37

$675.79

+3.64

158.43

$25,023

158.43

$4.58

$726.26

+3.65

162.08

$27,392

162.08

$4.81

$780.15

+3.67

165.75

$29,972

165.75

$5.05

$837.69

+3.68

169.43

$32,782

Frequently asked questions

What is a DRIP?

A Dividend Reinvestment Plan automatically uses each dividend payout to buy additional shares of the same stock, often without commission. Over decades the share count compounds, and at constant or growing dividend per share, dividend income compounds along with it.

How is the calculator's reinvestment timing simplified?

The calculator reinvests dividends once per year at the year-end price. Real DRIPs reinvest at each pay date (typically quarterly), which produces slightly higher long-term outcomes when the price is rising. The annual approximation is within a few percent for typical assumptions.

Are taxes included?

Yes — apply your dividend tax rate as a single field. Set 0% if the position is held in a tax-advantaged account (IRA, Roth, 401(k)). For qualified dividends in a US taxable brokerage account, common rates are 0% / 15% / 20% based on income; ordinary dividends use marginal rates.

Why does yield-on-cost grow over time?

Yield-on-cost = current annual dividend ÷ original investment. Two things push it up: (1) dividend per share grows at the dividend growth rate; (2) under DRIP, share count grows from reinvestment. Both effects compound. Mature dividend growers can reach 10%+ yield-on-cost after 20 years even when current yield is 3%.

What's missing from this model?

Real-world drag: brokerage commissions on non-DRIP fees, fractional-share rounding, dividend cuts (companies sometimes cut), special dividends, tax withholding on foreign stocks, FX fluctuations on ADRs, sector concentration risk, and the fact that high-yield stocks often turn out to be value traps. The calculator is deterministic; markets are not.

Dividend Reinvestment (DRIP) Calculator

How this calculator works

Worked example: 100 shares @ $50 ($5,000), $2 div/sh, 5% div growth, 7% price growth, 20 years, 15% tax

Sources & methodology

Frequently asked questions

Related

Important disclaimers

Dividend Reinvestment (DRIP) Calculator

How this calculator works

Worked example: 100 shares @ $50 ($5,000), $2 div/sh, 5% div growth, 7% price growth, 20 years, 15% tax

Sources & methodology

Frequently asked questions

Related

Important disclaimers