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DRIP Calculator

Project a dividend reinvestment plan share by share, including share count growth.

About DRIP Calculator

Reinvestment compounds the share count at the dividend yield, independently of price growth. A 5% yield reinvested for twenty years more than doubles the number of shares held. Because dividends buy more shares when prices are low, a DRIP quietly averages in and accelerates accumulation during downturns.

Formula

DRIP

Shares grow at the dividend yield each year: shares × (1 + yield)^years

share count growth
Reinvestment increases units held even when the price is flat

Worked example

With the default values below, DRIP Calculator returns Shares After the Period of 1,368.01. Change any input above and every figure here is recalculated in your browser.

Inputs used

Starting sharesminimum 0
500
Current share priceminimum 0.01
62
Annual dividend per shareminimum 0
3.2
Annual share price growthaccepts 0–100 %
4 %
Years to projectaccepts 1–50 years
20 years

Results

Shares After the Period
1,368.01
Portfolio Value
$185,843.17
Shares Added by Reinvestment
868.01
Annual Dividend Income at the End
$9,591.91
Growth in Share Count
173.60%

Step by step

  1. 1Values used
  2. 2DRIP
  3. 3Shares After the Period= 1,368.01
  4. 4Portfolio Value= 185,843.17
  5. 5Shares Added by Reinvestment= 868.01
  6. 6Annual Dividend Income at the End= 9,591.91
  7. 7Growth in Share Count= 173.60

Assumptions and limits

  • The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is DRIP calculated?

Shares grow at the dividend yield each year: shares × (1 + yield)^years Reinvestment compounds the share count at the dividend yield, independently of price growth. A 5% yield reinvested for twenty years more than doubles the number of shares held.

Why does DRIP matter?

Because dividends buy more shares when prices are low, a DRIP quietly averages in and accelerates accumulation during downturns.

What values do I need to enter?

This calculator takes 5 inputs: Starting shares, Current share price, Annual dividend per share, Annual share price growth, Years to project. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

Related Calculators

DRIP Calculator – Calculate Shares After the Period