Dividend Reinvestment Calculator
DRIP programs buy more shares with cash dividends; this stylized model assumes you reinvest once per year and price also moves by your growth assumption.
It is a teaching curve—not a substitute for your broker’s lot accounting.
DRIP vs. cash dividends
How this is calculated
Let g be annual price growth and d dividend yield on market value. With once-a-year reinvest, ending value ≈ start × ((1+g)×(1+d))years.
Without reinvest, shares appreciate at g while each year’s dividend is taken as cash: ending stock value = start×(1+g)years; cumulative cash dividends = d×start×(((1+g)years−1)/g) (or d×start×years if g=0).
Use this tool for
- Illustrating why reinvestment steepens the curve when yield is meaningful.
- Comparing two funds with different yields but similar price growth assumptions.
- Homework on multiplicative vs. cash-drag paths.
Common questions
Why differ from my broker?
Brokers use actual share counts, fees, and ex-div dates; this is a smooth annual multiplier model.
Negative price growth?
You can enter a negative growth percent; reinvest path still compounds (1+g)(1+d) each year.
