DRIP Calculator
See how dividend reinvestment can accelerate your wealth building. Compare the long-term impact of reinvesting dividends (DRIP) versus taking them as cash across different market scenarios.
Starting shares: 200 at $50 per share
Projected Portfolio Value
$27,630
after 20 years of dividend reinvestment
Total Shares Owned
552.602
Annual Dividend Income
$2,199
Dividends Reinvested
$17,630
Portfolio Value Over Time
Investment Parameters
Starting shares: 500
Dividend Settings
= $3.50 per share annually
Set to 0 for flat dividends
Stock Price Scenarios
Annual stock price appreciation rates
Cash Alternative
Return on dividends taken as cash (e.g., savings account, bonds)
Initial Shares
500
Dividend/Share
$3.50
Annual Dividend Income
$1,750
Sensitivity Analysis: DRIP vs Taking Cash
Compares projected final values across bear, base, and bull scenarios.
Base Case Details (5.00% Stock Appreciation)
Final Portfolio (DRIP)
$576,596
Final Value (Cash)
$497,418
Final Shares
2,173.128
Yield on Cost
11.87%
Total Dividends Reinvested
$170,040
Final Annual Dividend
$20,181
Total Return
239.17%
Annualized Return
6.30%
Portfolio Value Over Time
Shaded area shows the bear-to-bull range. Dashed line represents the cash alternative.
Share Accumulation
Annual Dividend Income
Year-by-Year Breakdown (Base Case)
| Year | Shares | Share Price | Portfolio | Annual Div | Yield on Cost | Cash Total | DRIP Advantage |
|---|---|---|---|---|---|---|---|
| 0 | 500 | $100.00 | $50,000 | $1,750 | 3.50% | $50,000 | +$0 |
| 1 | 577.179 | $105.00 | $60,604 | $2,121 | 3.79% | $60,571 | +$33 |
| 2 | 654.275 | $110.25 | $72,134 | $2,525 | 4.07% | $71,968 | +$165 |
| 3 | 731.42 | $115.76 | $84,671 | $2,963 | 4.36% | $84,245 | +$426 |
| 4 | 808.743 | $121.55 | $98,303 | $3,441 | 4.65% | $97,458 | +$845 |
| 5 | 886.372 | $127.63 | $113,126 | $3,959 | 4.95% | $111,666 | +$1,460 |
| 6 | 964.436 | $134.01 | $129,244 | $4,524 | 5.26% | $126,933 | +$2,311 |
| 7 | 1,043.06 | $140.71 | $146,769 | $5,137 | 5.58% | $143,325 | +$3,444 |
| 8 | 1,122.37 | $147.75 | $165,825 | $5,804 | 5.92% | $160,914 | +$4,912 |
| 9 | 1,202.491 | $155.13 | $186,546 | $6,529 | 6.28% | $179,773 | +$6,773 |
| 10 | 1,283.547 | $162.89 | $209,076 | $7,318 | 6.65% | $199,983 | +$9,093 |
| 11 | 1,365.663 | $171.03 | $233,575 | $8,175 | 7.05% | $221,628 | +$11,947 |
| 12 | 1,448.963 | $179.59 | $260,213 | $9,107 | 7.47% | $244,795 | +$15,418 |
| 13 | 1,533.572 | $188.56 | $289,178 | $10,121 | 7.91% | $269,578 | +$19,599 |
| 14 | 1,619.615 | $197.99 | $320,673 | $11,224 | 8.38% | $296,078 | +$24,595 |
| 15 | 1,707.219 | $207.89 | $354,919 | $12,422 | 8.87% | $324,398 | +$30,520 |
| 16 | 1,796.51 | $218.29 | $392,156 | $13,725 | 9.40% | $354,650 | +$37,506 |
| 17 | 1,887.616 | $229.20 | $432,645 | $15,143 | 9.96% | $386,950 | +$45,695 |
| 18 | 1,980.667 | $240.66 | $476,671 | $16,683 | 10.56% | $421,423 | +$55,248 |
| 19 | 2,075.794 | $252.70 | $524,543 | $18,359 | 11.19% | $458,200 | +$66,343 |
| 20 | 2,173.128 | $265.33 | $576,596 | $20,181 | 11.87% | $497,418 | +$79,178 |
About This Analysis
This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.
- ·Does not account for taxes on dividend income or capital gains.
- ·Assumes dividends are reinvested at current share price without transaction fees.
- ·Past dividend history does not guarantee future dividend payments.
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Quick Reference
- Historical Market ReturnsS&P 500, bonds, inflation by decade
- Asset Allocation GuidelinesStocks/bonds mix by age and risk tolerance
- Expense Ratio BenchmarksWhat to expect for index funds, ETFs, active funds
- Index Fund ComparisonS&P 500, Total Market, International — top options
- Brokerage Account ComparisonTaxable vs IRA vs 401(k) features
- Dividend Tax RatesQualified vs ordinary dividends
Insights
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