Dividend Calculator
Estimate your dividend income and see what reinvesting it (DRIP) adds.
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DRIP calculator: reinvesting vs. taking cash
Results by year
| Year | Contributed | Annual dividend | Total dividends | Yield on cost | Without DRIP | With DRIP |
|---|---|---|---|---|---|---|
| 1 | $16,000 | $555 | $555 | 3.5% | $17,209 | $17,226 |
| 2 | $22,000 | $848 | $1,403 | 3.9% | $25,017 | $25,111 |
| 3 | $28,000 | $1,168 | $2,572 | 4.2% | $33,455 | $33,717 |
| 4 | $34,000 | $1,518 | $4,089 | 4.5% | $42,554 | $43,109 |
| 5 | $40,000 | $1,899 | $5,988 | 4.7% | $52,347 | $53,358 |
| 6 | $46,000 | $2,315 | $8,303 | 5.0% | $62,868 | $64,544 |
| 7 | $52,000 | $2,769 | $11,072 | 5.3% | $74,155 | $76,752 |
| 8 | $58,000 | $3,265 | $14,337 | 5.6% | $86,245 | $90,075 |
| 9 | $64,000 | $3,805 | $18,142 | 5.9% | $99,179 | $104,614 |
| 10 | $70,000 | $4,396 | $22,538 | 6.3% | $112,999 | $120,482 |
| 11 | $76,000 | $5,040 | $27,577 | 6.6% | $127,748 | $137,798 |
| 12 | $82,000 | $5,743 | $33,320 | 7.0% | $143,474 | $156,697 |
| 13 | $88,000 | $6,510 | $39,829 | 7.4% | $160,226 | $177,322 |
| 14 | $94,000 | $7,347 | $47,176 | 7.8% | $178,054 | $199,830 |
| 15 | $100,000 | $8,261 | $55,437 | 8.3% | $197,012 | $224,395 |
| 16 | $106,000 | $9,258 | $64,694 | 8.7% | $217,158 | $251,203 |
| 17 | $112,000 | $10,346 | $75,040 | 9.2% | $238,550 | $280,460 |
| 18 | $118,000 | $11,533 | $86,574 | 9.8% | $261,250 | $312,389 |
| 19 | $124,000 | $12,829 | $99,403 | 10.3% | $285,325 | $347,234 |
| 20 | $130,000 | $14,244 | $113,647 | 11.0% | $310,843 | $385,263 |
Projections, not guarantees: yield, growth and tax rates are held constant and dividends can be cut. "Without DRIP" is your shares plus every dividend collected as cash, so the gap between the two lines is what reinvesting earned.
FAQ
How is dividend income calculated?+
Shares × annual dividend per share, or portfolio value × dividend yield. $50,000 at a 3% yield pays about $1,500 a year, or $125 a month.
How much do I need invested to make $1,000 a month in dividends?+
$12,000 a year divided by your yield: $400,000 at 3%, $300,000 at 4% or $240,000 at 5%.
What is a DRIP?+
A dividend reinvestment plan uses each cash dividend to buy more shares, usually fractional and commission-free at a broker. Those shares then earn dividends too, so the share count compounds.
What is yield on cost?+
This year's dividends divided by everything you have put in. It rises as dividends grow and as reinvested dividends buy more shares.
Are reinvested dividends taxed?+
Yes. In a taxable account they are taxed in the year they are paid, the same as cash dividends. Enter a tax rate to reinvest only what is left, or leave it at 0% for an IRA or 401(k).