Investing
Dividend Calculator
Estimate dividend income and long-term portfolio growth when dividends are reinvested each year through a DRIP.
Enter an investment, a dividend yield, and an expected price growth rate to see your first-year income and how reinvested dividends compound over time.
Investing
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Scenario presets
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Example
A $50,000 portfolio yielding 3.5% pays about $1,750 in the first year, and reinvesting those dividends speeds up the growth from there.
Results
Final portfolio value
$212,393
Total dividends earned
$75,783
First-year income
$1,750
Projection
Trend view
Milestones
Decision cues
Breakdown
Cost mix
Result reading
The visual trend is moving up, with an approximate change of $158,643 across the period shown.
Planning cue
Use the output as a scenario test rather than a promise. Small input changes can materially change the result.
Assumes dividends are reinvested once a year and that the yield and growth rates stay constant. Taxes are not included.
How it works
What the result is showing you
These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.
How dividend reinvestment compounds
When dividends are reinvested, each payout buys more shares, and those shares then pay their own dividends. Over many years this loop can turn a steady yield into a meaningfully larger portfolio than price growth alone would produce.
Yield is not the whole return
Total return combines the dividend yield with any change in share price. A high yield with falling prices can lag a modest yield paired with steady growth, so it helps to look at both numbers together.
What this model simplifies
This estimate assumes a constant yield, steady price growth, and dividends reinvested once a year. Real dividends can be cut or raised, prices move unevenly, and taxes on dividends in a regular account will lower the net result.
FAQ
Frequently asked questions
Quick answers to the questions people ask most about this calculator.
What is a DRIP?
A DRIP, or dividend reinvestment plan, automatically uses each dividend payment to buy more shares instead of paying you cash. It is a simple way to keep compounding without having to act on every payout.
Are reinvested dividends taxed?
In a regular taxable account, dividends are generally taxable in the year they are paid even if you reinvest them. In tax-advantaged accounts like an IRA, that yearly tax is deferred or avoided. This tool does not subtract taxes.
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