💰 Dividend Reinvestment Calculator
See how dividend reinvestment grows your portfolio. Calculate total returns with yield, price growth, and compounding — free, instant, no signup.
Project how dividend reinvestment grows your portfolio over time. Set initial investment, monthly contributions, dividend yield, share price growth, and tax rate — see year-by-year breakdowns of total value, dividends earned, and compound growth. Adjust any variable in real time to compare investment scenarios. No signup required.
📋 When to Use the Dividend Reinvestment Calculator
Dividend investors use this calculator to project total returns from dividend-paying stocks or ETFs under reinvestment (DRIP). Model your portfolio's growth with monthly contributions, dividend yield, share price appreciation, and tax rate — set tax to 0% for tax-advantaged accounts (ISA, 401k, TFSA). The stacked bar chart breaks down exactly how much of your final value comes from your invested principal, reinvested dividends, and price growth. ⚠️ This tool projects returns using constant-rate assumptions — real dividend yields and stock prices fluctuate, and past performance does not guarantee future results. This is not financial advice.
⚙️ How the Dividend Reinvestment Calculator Works
The simulation runs month by month for your chosen number of years. Each month: your contribution M is added, share price grows by the monthly rate (1 + growthPct)^(1/12) − 1, and a dividend is calculated as: dividend = shares × sharePrice × (yieldPct / 12). After applying your tax rate afterTax = dividend × (1 − taxPct), the net dividend is reinvested to buy more shares — increasing future dividend payments (the compounding effect). The stacked Chart.js bar chart separates your final portfolio into three layers: invested principal, accumulated dividends, and pure price growth. All computation is browser-side only.
How to Use the Dividend Reinvestment Calculator
- Enter your initial investment — the starting amount you already have invested in dividend-paying stocks or ETFs.
- Set your monthly addition — how much you plan to add each month. The calculator reinvests dividends automatically.
- Adjust dividend yield and share price growth — use realistic estimates based on your portfolio. Set the tax rate to 0% for tax-advantaged accounts (ISA, 401k, TFSA).
- Click Calculate — review your final portfolio value, total dividends earned, and the stacked bar chart showing how invested principal, dividends, and price growth contribute over time.
Frequently Asked Questions
How does dividend reinvestment work?
When you reinvest dividends, the cash payout is used to buy more shares instead of being taken as income. Those new shares then generate their own dividends, creating a compounding effect that accelerates portfolio growth over time.
What dividend yield should I use?
A typical S&P 500 dividend yield is around 1.5–2%. High-dividend ETFs may yield 3–5%. Be realistic — yields above 8% often signal risk. Use the yield of your actual portfolio for the most accurate projection.
How does the tax rate affect results?
Dividend taxes reduce the amount available for reinvestment. Set the tax rate to 0% if you hold investments in a tax-advantaged account like an ISA, 401k, or TFSA. Otherwise, use your marginal dividend tax rate.
What share price growth rate should I assume?
Long-term U.S. stock market returns average about 7–10% annually (including dividends). For conservative projections, use 5–6% price growth plus your dividend yield. For optimistic scenarios, use 8–10%.