Dividend Reinvestment Calculator
Follow the shares bought with after-tax dividends. Compare your chosen DRIP percentage with a cash-only or full-reinvestment alternative.
Your position
Derived shares: 200 · Fractional shares allowed.
Derived yield: 4%. Based on your entered assumptions.
Based on your entered assumptions. No market data is fetched.
$887 annual gross · $222 quarterly equivalent · $74 monthly after tax.
At the end of year 20; actual gross dividends during that year: $865.
Reinvestment / DRIP impact 100% vs 0% · $12,167 portfolio difference
All other inputs are identical. Difference = selected DRIP minus alternate. Retained cash remains separate from the portfolio.
| Metric | Selected 100% | Alternate 0% | Difference |
|---|---|---|---|
| Portfolio | $22,167 | $10,000 | $12,167 |
| Monthly gross income | $74 | $33 | $41 |
| Dividends reinvested | $12,167 | $0 | $12,167 |
| Cash retained | $0 | $8,000 | -$8,000 |
| Gross dividends | $12,167 | $8,000 | $4,167 |
Return breakdown Where the ending value comes from
- Initial investment
- $10,000
- Recurring external contributions
- $0
- Reinvested dividends
- $12,167
- Share-price growth / loss
- $0
- Final portfolio value
- $22,167
- Cash dividends retained separately
- $0
Portfolio = initial investment + recurring contributions + reinvested dividends + share-price change. Price change is accumulated monthly on shares held during each price movement. It is not inferred from a residual. Cash is excluded; gross dividends already include both reinvestment and cash before tax, so adding them again would double count.
How was this calculated?
- Entry mode
- By Amount
- Dividend entry
- By Dividend / Share
- Initial investment
- $10,000
- Initial shares
- 200
- Share price
- $50
- Annual dividend per share
- $2
- Starting yield
- 4%
- Dividend growth
- 0%
- Price growth
- 0%
- Reinvestment after tax
- 100%
- Dividend tax
- 0%
- Inflation
- 2.5%
- Contribution per payment
- $0
- Contribution frequency
- 12/year
- Contribution growth
- 0%
- Dividend frequency
- 4/year
- Yield cap
- No cap
- Horizon
- 20 years
Contributions buy fractional shares at period start. Price and raw annual dividend grow monthly at (1 + annual rate)^(1/12) − 1. The optional cap limits effective annual dividend to price × cap each month; raw dividend growth continues independently. Generic period-end payments equal shares × effective annual dividend / payments per year. Flat tax is deducted before DRIP; retained cash earns no interest and is excluded from portfolio value. Inflation discounts only ending portfolio value. Fees and capital-gains taxes are excluded.
At the end of year 20, $887 annual gross run-rate ÷ 12 = $74 monthly equivalent. This differs from the $865 actually simulated during that year. Yield on contributed capital divides the ending annual run-rate by external contributions; reinvestment is excluded from its denominator.
Your projection, year by year
Use the year slider with your keyboard to inspect exact annual estimates.
Annual DRIP projection
Annual projection
Whole-dollar estimates| Year | Starting value | Contributions | Gross dividends | Taxes | Reinvested | Cash retained | Ending value | Annual income | Monthly equivalent |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $10,000 | $0 | $406 | $0 | $406 | $0 | $10,406 | $416 | $35 |
| 2 | $10,406 | $0 | $423 | $0 | $423 | $0 | $10,829 | $433 | $36 |
| 3 | $10,829 | $0 | $440 | $0 | $440 | $0 | $11,268 | $451 | $38 |
| 4 | $11,268 | $0 | $458 | $0 | $458 | $0 | $11,726 | $469 | $39 |
| 5 | $11,726 | $0 | $476 | $0 | $476 | $0 | $12,202 | $488 | $41 |
| 6 | $12,202 | $0 | $495 | $0 | $495 | $0 | $12,697 | $508 | $42 |
| 7 | $12,697 | $0 | $516 | $0 | $516 | $0 | $13,213 | $529 | $44 |
| 8 | $13,213 | $0 | $536 | $0 | $536 | $0 | $13,749 | $550 | $46 |
| 9 | $13,749 | $0 | $558 | $0 | $558 | $0 | $14,308 | $572 | $48 |
| 10 | $14,308 | $0 | $581 | $0 | $581 | $0 | $14,889 | $596 | $50 |
| 11 | $14,889 | $0 | $605 | $0 | $605 | $0 | $15,493 | $620 | $52 |
| 12 | $15,493 | $0 | $629 | $0 | $629 | $0 | $16,122 | $645 | $54 |
| 13 | $16,122 | $0 | $655 | $0 | $655 | $0 | $16,777 | $671 | $56 |
| 14 | $16,777 | $0 | $681 | $0 | $681 | $0 | $17,458 | $698 | $58 |
| 15 | $17,458 | $0 | $709 | $0 | $709 | $0 | $18,167 | $727 | $61 |
| 16 | $18,167 | $0 | $738 | $0 | $738 | $0 | $18,905 | $756 | $63 |
| 17 | $18,905 | $0 | $768 | $0 | $768 | $0 | $19,672 | $787 | $66 |
| 18 | $19,672 | $0 | $799 | $0 | $799 | $0 | $20,471 | $819 | $68 |
| 19 | $20,471 | $0 | $831 | $0 | $831 | $0 | $21,302 | $852 | $71 |
| 20 | $21,302 | $0 | $865 | $0 | $865 | $0 | $22,167 | $887 | $74 |
Contributions in each row exclude the initial investment. Income columns are the year-end gross run-rate; dividends are actual simulated payments within that year.
Educational estimates from manual inputs. Dividends, prices, and taxes can change. Not investment advice or guaranteed income.
The formula
New shares per payment = gross dividend × (1 − tax rate) × reinvestment rate ÷ payment-date share price.
Calculation conventions and limitations →A worked example
$10,000 at 4% yield, quarterly payments, full DRIP, and no growth, contributions, or tax ends one year at $10,406.04: $10,000 × 1.01⁴. With no DRIP, the portfolio stays at $10,000 and $400 is retained as cash.