Free dividend reinvestment calculator (DRIP)
See exactly how reinvesting dividends compounds your portfolio over time. Compare DRIP vs cash on any yield, growth rate and time horizon.
Dividend reinvestment calculator
With DRIP (reinvested)
£377,103
Annual income at year 20: £40,918
Taking cash
£125,510 portfolio
+ £90,670 taken as cash
Total: £216,180
DRIP advantage
£160,923
Side-by-side compounding
DRIP and cash from the same starting point.
Dividend growth modelling
Layer in annual dividend hikes.
Monthly contributions
Add fresh capital on top of reinvestment.
Why reinvested dividends compound faster than you think
When dividends are reinvested, each payout buys more shares — and those shares earn dividends of their own. After 10 years the effect is meaningful; after 30 years it's enormous. Even a modest 4% starting yield with 5% annual dividend growth can quadruple your share count over a working life.
Things this calculator helps you decide
- Whether to enable DRIP on a specific holding.
- How much you'd need to invest to hit a target passive income.
- The cost of "switching off" reinvestment to take cash early.
Frequently asked questions
What does a dividend reinvestment calculator do?
It simulates two paths in parallel — one where every dividend buys more shares (DRIP), one where dividends accumulate as cash — so you see the long-term compounding gap.
Does dividend reinvestment really compound?
Yes. Each reinvested dividend buys new shares that themselves earn dividends. Over 20–30 years, DRIP often doubles the cash-only result on the same stock.
What inputs does the calculator need?
Initial investment, monthly contribution, starting dividend yield, share price growth, dividend growth rate and time horizon.