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
Future value
$663,328
Annual dividend income
$26,533
$2,211/mo at year 25
Total invested
$175,000
Dividends collected
$248,952
| Year | Portfolio value | Annual 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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