Dividend & DRIP calculator
Enter any stock or ETF's price and dividend to see what it could pay you each month, how much reinvesting adds, and how the snowball builds year by year.
After 20 years
That's $15,996 a year, from a portfolio worth $378,115.
Reinvesting adds $69,492 to your ending balance and $524/mo to your income compared with taking cash.
| Year | Added | Div / share | Dividends | Yield on cost | Shares | Price | Balance |
|---|---|---|---|---|---|---|---|
| 1 | $16,000 | $1.75 | $467 | 2.9% | 325.93 | $52.50 | $17,111 |
| 2 | $6,000 | $1.86 | $726 | 3.3% | 450.64 | $55.13 | $24,842 |
| 3 | $6,000 | $1.97 | $1,012 | 3.6% | 574.46 | $57.88 | $33,250 |
| 4 | $6,000 | $2.08 | $1,329 | 3.9% | 697.68 | $60.78 | $42,402 |
| 5 | $6,000 | $2.21 | $1,679 | 4.2% | 820.63 | $63.81 | $52,368 |
| 6 | $6,000 | $2.34 | $2,066 | 4.5% | 943.59 | $67.00 | $63,225 |
| 7 | $6,000 | $2.48 | $2,494 | 4.8% | 1,066.9 | $70.36 | $75,062 |
| 8 | $6,000 | $2.63 | $2,967 | 5.1% | 1,190.85 | $73.87 | $87,971 |
| 9 | $6,000 | $2.79 | $3,489 | 5.5% | 1,315.76 | $77.57 | $102,059 |
| 10 | $6,000 | $2.96 | $4,068 | 5.8% | 1,441.96 | $81.44 | $117,440 |
Why we built this
Not in theory, and not "an average of 7% a year". In dollars, on a Tuesday, in year twelve. That's the question this calculator is built around.
So the first number you see is monthly income, not a giant portfolio total. Every assumption sits in plain view, and you can switch to today's dollars to see what that income would really buy.
— The DividendCalculatorUSA team
Say you invest $10,000 in a fund priced at $50 that yields 3.5%, add $500 every month, and assume the dividend grows 6% a year while the share price grows 5%. Everything is reinvested in a tax-advantaged account.
| After | You put in | Portfolio value | Dividend income |
|---|---|---|---|
| 10 years | $70,000 | $117,440 | $4,068 that year |
| 20 years | $130,000 | $378,115 | $1,333/month |
The interesting part is the second decade. Over the first ten years, dividends are a modest top-up. Over the next ten, the shares bought with earlier dividends start paying dividends of their own, and each payment is larger because the dividend per share has been growing. Taking the dividends as cash instead would leave you with about $308,623 in the account (including the cash) and $809/month of income, so reinvesting is worth roughly $69,492 here.
This is the question the calculator is best at answering, and the answer surprises people. Take $10,000 invested two ways, dividends reinvested, nothing added: a dividend grower yielding 3% with the dividend rising 8% a year, and a high yielder paying 6% with the dividend rising 1% a year.
| After | Grower: annual income | High yielder: annual income | Grower: value | High yielder: value |
|---|---|---|---|---|
| 5 years | $512 | $848 | $15,543 | $14,130 |
| 10 years | $887 | $1,198 | $24,513 | $19,965 |
| 20 years | $2,793 | $2,392 | $64,072 | $39,859 |
| 30 years | $9,510 | $4,775 | $180,927 | $79,578 |
The high yielder wins on income for the first stretch, and that matters if you need the money now. But in this example the grower's income overtakes it in year 17, and its portfolio is worth far more by the end because faster dividend growth usually comes with faster price growth. Neither is "right". If you're 30, the grower's math is hard to ignore. If you're 66 and need income this year, the bird in the hand counts. Try both with the quick-start buttons above.
You don't need a ticker database. Every number the calculator needs is on the fund or company's own website, or any quote page:
dividend growth rate = (dividend now ÷ dividend n years ago)^(1/n) − 1 Example: a company paid $1.20 per share five years ago and $1.68 over the last twelve months. That's (1.68 ÷ 1.20)^(1/5) − 1 = about 7% a year. Past growth is a starting point, not a promise. Using 1–2 points less than the historical rate gives you a projection you can actually rely on.
If you just want this quarter's check, you don't need a projection:
payout per payment = shares owned × dividend per share annual dividend income = shares owned × annual dividend per share = position value × dividend yield Owning 240 shares of a stock that pays $0.45 a quarter means $108 per payment and $432 a year. Note the money arrives on the payment date, but you must own the shares before the ex-dividend date to receive it. For yield-based math (forward vs trailing yield), use the dividend yield calculator.
The calculator steps through your investment one week at a time, so monthly contributions, quarterly dividends and weekly purchases all land on the right dates. Each time a dividend is paid:
dividend = shares owned × (annual dividend per share ÷ payments per year) If DRIP is on, the dividend (minus any tax you set) buys more shares at that day's price:
new shares = dividend after tax ÷ share price The dividend per share rises once a year by your dividend growth rate, and the share price rises gradually through the year by your price growth rate. Yield on cost compares your dividend income with the money you contributed. The annualized return is a money-weighted figure (IRR) that accounts for when each contribution went in. All of this is documented in more detail on the methodology page.
Treat the result as a model of your assumptions, not a forecast. A few things it deliberately leaves out:
Tip: Copy the link above the table. It saves every input in the URL, so you can bookmark a scenario or send it to someone without creating an account.
Multiply your shares by the dividend per payment. 150 shares of a stock paying $0.62 a quarter pay you $93 each quarter, or $372 a year. If you only know the yield, multiply your position value by the yield: $12,000 at 3.1% is about $372 a year.
Yes. Enter the fund's current price, its annual dividend per share (add up the last four quarterly or twelve monthly payments) and its payout frequency. For dividend growth, use a cautious rate based on the fund's own history. Option-income funds like JEPI or JEPQ have distributions that change month to month, so test a lower and a higher amount.
Similar idea, different engine. Compound interest assumes one fixed rate. Dividend compounding has two moving parts: the dividend per share grows, and reinvested dividends buy more shares at a changing price. That is why this calculator asks for dividend growth and price growth separately.
Multiply the number of shares you own by the annual dividend per share. 200 shares of a stock paying $2.00 a year produce $400 a year, or $100 each quarter if it pays quarterly. To work from a dollar amount instead, multiply the amount invested by the dividend yield: $20,000 at a 3% yield is about $600 a year.
A dividend reinvestment plan (DRIP) uses each dividend to buy more shares, which then pay their own dividends. Over short periods the difference is small. Over 15 to 30 years it is usually large, because the extra shares compound alongside dividend growth. Use the "DRIP vs cash" chart above to see the gap for your own numbers.
Yes. In a taxable brokerage account, reinvested dividends are taxed in the year they are paid, exactly as if you had taken the cash. In an IRA, 401(k) or Roth account they are not taxed each year. Set your account type under Advanced settings to model this.
Use a rate you would be comfortable defending, not the best five years on record. Companies with long histories of raising dividends have often grown them by mid-to-high single digits a year, while high-yield payers often grow them slowly or not at all. Running the calculator at a few different rates is more useful than trusting one number.
No. A very high yield can be a sign that the market expects a dividend cut, and high-yield holdings often grow their payouts slowly. A lower yield with faster dividend growth can overtake a higher yield over 10 to 20 years. Try the three quick-start profiles in the calculator to compare.
Calculators make different timing assumptions: when dividends are paid, when contributions arrive, when price growth applies and whether reinvested dividends buy fractional shares. Ours simulates week by week and publishes every assumption on the methodology page, so you can see exactly how the number was produced.
A 30-year worked example, DRIP in a falling market, cost basis, and when to turn it off.
Read the guide →
Six steps, a realistic 25-year example and the mistakes that cost beginners most.
Read the guide →
The exact rules, how the index works, and what a long dividend streak does not tell you.
Read the guide →