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Dividend Reinvestment (DRIP) Calculator

Reinvesting your dividends buys more shares, which pay more dividends, which buy more shares. See how much that snowball is worth over time — and the difference DRIP makes versus taking the cash. Free, no sign-up.

Your plan

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Future value

$663,328

Annual dividend income

$26,533

$2,211/mo at year 25

Total invested

$175,000

Dividends collected

$248,952

The DRIP difference: reinvesting grows your portfolio to $663,328 vs $326,516 if you took the cash — about $336,812 more over 25 years.
YearPortfolio valueAnnual income
1$33,530$1,341
2$42,755$1,710
3$52,734$2,109
4$63,526$2,541
5$75,200$3,008
6$87,826$3,513
7$101,482$4,059
8$116,252$4,650
9$132,228$5,289
10$149,507$5,980
11$168,197$6,728
12$188,411$7,536
13$210,275$8,411
14$233,923$9,357
15$259,501$10,380
16$287,166$11,487
17$317,088$12,684
18$349,452$13,978
19$384,457$15,378
20$422,318$16,893
21$463,269$18,531
22$507,562$20,302
23$555,468$22,219
24$607,284$24,291
25$663,328$26,533

Estimates only; not financial advice. Assumes a constant yield and growth rate, which real markets won't deliver.

How DRIP compounding works

A dividend reinvestment plan (DRIP) automatically uses each dividend to buy more shares of the stock or fund that paid it. Those extra shares pay their own dividends next time, and the cycle repeats. Stack on companies that raise their payouts, and two compounding forces work together: more shares and a bigger dividend per share. Over a long horizon, the gap between reinvesting and taking the cash becomes dramatic — toggle DRIP off above to see it.

When to reinvest vs. take the cash

While you are building wealth, reinvesting is usually the stronger choice. Once you are living off your portfolio, you want the cash — that is the whole point. And if one holding has grown too large, redirecting its dividends elsewhere can reduce concentration risk. Learn more in our guide to how dividend reinvestment works, or see the income side with the dividend income calculator.

Model DRIP on your real holdings

YieldLens projects your income with DRIP on your actual portfolio — free for up to 15 holdings.

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