DRIP Calculator
See how reinvesting dividends compounds over time. Pick a stock or ETF, set how much you invest and how long you hold, and compare reinvesting against taking the income as cash — using each company’s real payment schedule.
Your plan
JPM
JPMorgan Chase & Co.
1.80%
yield
$342.08 per share · Quarterly
After 20 years
Portfolio value with reinvestment
$37,983
$5,321 more than taking the dividends as cash
- You put in
- $10,000
- Dividends collected
- $7,568
- Income in year 20
- $663
- Yield on cost
- 6.63%
Year by year
| Year | Shares | Income | Yield on cost | With DRIP | No DRIP |
|---|---|---|---|---|---|
| 1 | 29.8 | $187 | 1.87% | $10,690 | $10,685 |
| 2 | 30.3 | $200 | 2.00% | $11,428 | $11,405 |
| 3 | 30.8 | $213 | 2.13% | $12,216 | $12,161 |
| 4 | 31.4 | $228 | 2.28% | $13,059 | $12,954 |
| 5 | 32 | $244 | 2.44% | $13,960 | $13,787 |
| 6 | 32.6 | $261 | 2.61% | $14,924 | $14,662 |
| 7 | 33.1 | $279 | 2.79% | $15,954 | $15,580 |
| 8 | 33.7 | $298 | 2.98% | $17,054 | $16,545 |
| 9 | 34.4 | $318 | 3.18% | $18,231 | $17,557 |
| 10 | 35 | $340 | 3.40% | $19,489 | $18,620 |
| 11 | 35.6 | $364 | 3.64% | $20,834 | $19,737 |
| 12 | 36.3 | $389 | 3.89% | $22,272 | $20,909 |
| 13 | 36.9 | $416 | 4.16% | $23,809 | $22,140 |
| 14 | 37.6 | $444 | 4.44% | $25,452 | $23,432 |
| 15 | 38.3 | $475 | 4.75% | $27,208 | $24,789 |
| 16 | 39 | $508 | 5.08% | $29,085 | $26,214 |
| 17 | 39.7 | $543 | 5.43% | $31,092 | $27,710 |
| 18 | 40.4 | $580 | 5.80% | $33,238 | $29,281 |
| 19 | 41.1 | $620 | 6.20% | $35,531 | $30,930 |
| 20 | 41.8 | $663 | 6.63% | $37,983 | $32,662 |
Projections, not predictions. They assume the dividend is never cut and that both it and the share price grow at the rates you set, every year, without interruption — which almost no company achieves over a period this long. Figures are before tax and ignore any commission on reinvested shares. How we calculate these figures.
How dividend reinvestment compounds
Taking dividends as cash produces a straight line. A $10,000 holding yielding 4% pays $400 this year, $400 next year, and $400 every year after — the total grows, but at a constant rate.
Reinvesting bends that line. Each payment buys more shares, those shares pay dividends of their own, and the number of shares grows even if you never add another penny. The effect is unremarkable at first and decisive later: at a 4% yield the two approaches differ by less than 2% after five years, but by roughly 1.8 times after thirty.
Payment frequency matters more than most people expect. A monthly payer reinvests twelve times a year rather than four, so it compounds twelve times. This calculator uses each company’s actual schedule, drawn from its real payment history, rather than assuming quarterly.
The second engine is dividend growth. A company that raises its payment every year increases the amount being reinvested, on top of the growing share count. That is what drives yield on cost upward — the income measured against what you originally paid, rather than against today’s price.
What these projections cannot tell you
Every long-range projection here rests on assumptions that hold perfectly on a spreadsheet and rarely in reality. It assumes the dividend is never cut, that it grows at a fixed rate every year for decades, and that the share price does the same. Very few companies manage that — dividends get frozen during recessions and cut during crises, and a company that looks unassailable today may not exist in thirty years. The compounding is real; the specific number is not a forecast. Lower the growth sliders to see how much of the result depends on them.
Frequently asked questions
- What is a DRIP?
- DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividends as cash, they automatically buy more shares of the same holding. Those shares then pay dividends of their own, which buy more shares again — so the position compounds rather than paying a flat amount each year.
- Is reinvesting dividends actually worth it?
- It depends almost entirely on time. At a 4% yield, reinvesting is worth under 2% more than taking cash after five years — barely noticeable. After thirty years the same assumptions produce roughly 1.8 times as much, and more once dividend growth is included. DRIP is a strategy whose advantage arrives late, which is exactly why it is easy to dismiss early.
- What is yield on cost?
- Yield on cost is the income you now receive measured against what you originally paid, rather than against the current share price. If a company keeps raising its dividend, yield on cost climbs over time even though the headline yield stays roughly the same for new buyers. It is shown for every year in the table above.
- Do these projections account for tax or fees?
- No. Figures are before tax and assume reinvestment is free, which is true with most brokers today but not all. In a taxable account you generally owe tax on dividends in the year they are paid even when they are automatically reinvested, which reduces the amount actually compounding.
- How reliable are the growth assumptions?
- Treat them as scenarios, not forecasts. The projection assumes the dividend is never cut and that both the dividend and share price grow at your chosen rates every single year for the whole period. Very few companies achieve that over decades — dividend growth stalls, gets cut, or the business changes. Lower the growth rates to see how much of the result depends on them.