Dividend Reinvestment (DRIP) Calculator
See how reinvesting dividends accelerates wealth growth.
Compare portfolio value with DRIP vs without over time — and calculate total dividends received.
Portfolio Value with DRIP
Dividend Reinvestment (DRIP)
Each year the dividend is paid, then immediately reinvested to buy more shares.
Value (with DRIP) = P × (1 + g + d)^n
Where:
- P = initial investment
- g = annual stock price growth rate
- d = dividend yield (reinvested)
- n = years
Over time, reinvested dividends can account for 40–50% of total returns. This compounding effect is known as the “eighth wonder of the world.”