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Free Dividend Reinvestment (DRIP) Calculator

Free Dividend Reinvestment (DRIP) Calculator

Calculate Growth When Reinvesting Dividends

The Dividend Reinvestment (DRIP) Calculator helps investors see how reinvesting dividends can boost long term returns. By entering your initial investment, dividend amount, and stock growth rate, this tool calculates how reinvesting dividends to purchase more shares can accelerate portfolio growth over time. DRIP is a powerful strategy for compounding wealth without adding extra funds. Using this calculator allows both new and experienced investors to estimate potential growth, plan long term income strategies, and maximize the benefit of dividend-paying stocks. Understanding how reinvestment impacts your investments can help you make smarter, more profitable decisions and stay on track toward financial goals.

Dividend Reinvestment (DRIP) Calculator

Project the future value of your investment with dividend reinvestment.

Calculation Results

Future Value of Investment

$0.00

Total Dividends Reinvested

$0.00

Total Shares Owned

0.00

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Dividend Reinvestment (DRIP) Calculator Guide

The Formula We Use

  • DPS = Annual Dividend per Share
  • Total Dividend = DPS × Number of Shares
  • New Shares = Total Dividend ÷ Share Price
  • Updated Shares = Old Shares + New Shares
  • Portfolio Value = Updated Shares × Share Price
  • Yield on Cost = (DPS × Updated Shares) ÷ Initial Investment × 100

Example Calculation (USD)

Price $50.00
DPS $2.00
Qty 100
1 Year
  • Total Dividend = 2 × 100 = $200.00
  • New Shares = 200 ÷ 50 = 4 shares
  • Updated Shares = 100 + 4 = 104 shares
  • Portfolio Value = 104 × 50 = $5,200.00
  • Yield on Cost = (2 × 104 ÷ 5,000) × 100 ≈ 4.16%

How to Use This Calculator

  1. Enter Share Price, DPS (Dividend per Share), and Quantity.
  2. We compute total dividends and reinvest them into new shares.
  3. Check updated shares, portfolio value, and yield on cost.
  4. Repeat for multiple years to see compounding growth.

Tips for Successful DRIP Investing

  • Start early: Compounding accelerates over long periods.
  • Focus on growth: Firms that increase dividends boost long-term returns.
  • Diversify: Use DRIP across multiple dividend-paying stocks.
  • Check payout sustainability: Safe payout ratios reduce dividend cut risk.
  • Track annually: Review dividend growth and adjust strategy.

This is educational content, not financial advice.

Benefits of Using
Dividend Reinvestment (DRIP) Calculator

Automated Reinvestment Analysis

See how reinvesting dividends affects your long-term returns.

Portfolio Growth Insights

Visualize growth from dividend reinvestments over time.

Supports Global Stocks

Works with dividends from multiple international exchanges.

Beginner-Friendly

Easy-to-use calculator even for first-time investors.

Accurate Compounding

Calculates returns with reinvested dividends precisely.

Private & Secure

All computations happen locally, no data is stored or shared.

Frequently Asked Questions​

What is a DRIP?

A DRIP allows investors to reinvest dividends automatically to purchase more shares.

How does the calculator work?

Input dividends, stock price, and shares; the calculator projects growth over time.

Can I include international stocks?

Yes, simply enter dividend and price in your preferred currency.

Is it suitable for beginners?

Yes, the tool is designed for simple use with clear output charts.

Does it account for compounding?

Yes, the calculator shows the effect of reinvesting dividends for compounded growth.

Is my data stored?

No, all calculations are performed locally for full privacy.