Dividend Reinvestment (DRIP) Calculator
Simulate a Dividend Reinvestment Plan (DRIP) period by period — enter an initial investment, dividend yield, dividend growth rate, and share price growth to see a year-by-year share count, dividend income, and portfolio value, plus a DRIP-on vs. cash-dividend comparison.
Input
Annual dividend as a percentage of the starting share price.
How much the dividend per share rises each year. Use 0 for a flat dividend, or negative to model a cut.
Off pays dividends out as cash instead of buying more shares. The summary always compares both.
Output
| Metric | Value |
|---|---|
| No data yet | |
| Year | Share Price | Shares Held | Dividends Received | Portfolio Value |
|---|---|---|---|---|
| No data yet | ||||
Guides
What it does
A Dividend Reinvestment Plan (DRIP) automatically uses each dividend payout to buy more shares instead of paying it out as cash — those new shares then earn their own dividend next period, compounding the share count itself rather than just a cash balance. This calculator runs that simulation period by period: enter an initial investment, a starting share price, a dividend yield, and growth rates for both the dividend and the share price, and it projects your share count, dividend income, and portfolio value year by year, with dividends reinvested or paid out as cash.
How to use it
- Enter the initial investment and the starting share price — together these set the number of shares you start with.
- Enter the dividend yield (annual dividend as a percentage of the starting price), an annual dividend growth rate, and an annual share price growth rate.
- Pick quarterly or annual dividend payouts and how many years to project.
- Toggle Reinvest Dividends to see the year-by-year table with dividends bought back into shares, or turned off to see them held as cash instead — the summary always reports both, so you can see the DRIP advantage either way.
How the math works
Share price compounds every payout period at the rate implied by the annual growth rate. The dividend per share only steps up once a year — real companies raise dividends annually, not quarterly — and that year's rate is split evenly across its payout periods. Each period's dividend is paid on the shares held going into that period; with DRIP on, the cash immediately buys more shares at that period's price.
Reading the summary
- Yield on Cost — the dividend rate for the final year measured against your original purchase price, the standard way to see how much your income has grown relative to what you paid, independent of reinvestment.
- DRIP Advantage — the dollar and percentage gap between the reinvested and cash-dividend portfolio values at the end of the period, holding everything else constant.
Privacy
The whole simulation runs in your browser — nothing is uploaded or stored.
How is this different from a compound interest calculator?
The Compound Interest Calculator compounds a cash balance at a flat rate. This tool compounds a share count — dividends buy shares at a moving price, and the dividend itself grows independently of the price, which a flat interest rate can't model.
What about regular cash contributions instead of dividends?
For dollar-cost averaging a fixed periodic deposit into a position, use the DCA Calculator, which compares periodic buying against a lump sum.
Use it from code
From 3 credits per callREST API
curl -X POST https://api.iotools.cloud/v1/tool/dividend-reinvestment-calculator \
-H "Authorization: Bearer YOUR_API_KEY" \
-H "Content-Type: application/json" \
-d '{
"initialInvestment": "10000",
"sharePrice": "50",
"dividendYield": "3",
"dividendGrowthRate": "5",
"sharePriceGrowthRate": "6",
"years": "10",
"dividendFrequency": "4",
"reinvestDividends": "true"
}'Swap in your own key from your account. The tool's fields are the body — no wrapper.
Ask an AI agent
Use the IOTools `dividend-reinvestment-calculator` tool (Dividend Reinvestment (DRIP) Calculator) on this input:
YOUR_INPUT_HEREPaste this at any agent connected to the IOTools MCP server, then add your input.