DRIP Returns Calculator
Dividend Reinvestment Plan modeler — free, no account required
Model the long-term difference between reinvesting dividends back into shares versus collecting them as cash. Adjust yield, growth rate, contributions, and horizon to see compounding in action.
Power of Compounding
Reinvesting dividends buys more shares, which pay more dividends — exponential growth over time.
What is DRIP?
A Dividend Reinvestment Plan automatically uses dividend payouts to buy additional fractional shares instead of cash.
How to use
Enter your investment, the stock's yield and expected growth, then compare DRIP vs. cash over your horizon.
DRIP Returns Calculator
Informational onlyStarting Position
Invested
$10.00K
Shares
100.00
With DRIP (Reinvested)
$77.69K
+$67.69K (677% gain)
Final Shares
200.7631
Dividends Earned
$23.21K
Without DRIP (Cash Dividends)
$53.67K
+$43.67K (437% gain)
DRIP Advantage over 20 Years
+$24.02K
By reinvesting dividends vs. taking cash
This calculator uses compound interest math for informational modeling only. Past performance does not guarantee future results. Not financial advice.
Why DRIP Works: The Math Behind Dividend Reinvestment
Compound growth accelerates
Each reinvested dividend buys fractional shares. Those shares generate their own dividends next period. The effect snowballs — a 4% yield reinvested quarterly produces ~4.07% effective annual yield from compounding alone.
Dollar-cost averaging built in
When prices dip, your dividend buys more shares. When prices rise, each share is worth more. Automatic DRIP smooths your cost basis over market cycles without any manual action.
Dividend growth matters most
A company growing its dividend 5% per year doubles payout in ~14 years. Combined with price appreciation, dividend growers often outperform high-yield static payers over 10+ year periods.
The longer the better
DRIP's advantage over cash dividends grows exponentially with time. A 10-year DRIP might outperform by 15–20%. A 30-year DRIP on the same stock might outperform by 60–80% purely from compounding.
Disclaimer: This calculator is for informational and educational purposes only. All projections assume constant dividend yield and price growth — real-world results vary significantly. Dividend yields can be cut, prices can fall, and past performance does not guarantee future results. Stonkistan does not provide financial advice. Always do your own research.