Free Calculator

DRIP Calculator

Compare reinvesting dividends with taking cash, using your own assumptions.

Mode

Manual mode is free. Ticker scenarios require Plus or Pro.

Ticker scenario

Stock or ETF

From ticker data

Choose a ticker.

Price/share ($) Custom price allowed Payout/share ($) From payout basis

Your assumptions

Editable estimates; history is not a forecast.

Payout basis Return history Total return (%) (required) Annual; includes payouts Payout model Payout growth (%) Tax rate (%) Reinvest fee ($)

How this works

Total return includes distributions once: payouts reduce share price before reinvestment. At 0%, total value has no gain before tax and fees.
Future payouts approximate the selected cadence, not declared payment dates. Latest or repeated history is a scenario, not a promise. Specials are excluded; recorded splits are adjusted.
Price-scaled payouts follow modeled price. Fixed dollars can exhaust share value at low total returns; growth applies only to this model.
Income is gross and estimated, not received cash. Taxes apply in both scenarios; reinvestment fees apply only when reinvesting. Accumulated cash earns 0%.

Initial investment ($) Monthly contribution ($) Starting dividend yield (%) Annual price growth, excl. dividends (%) Years Payout frequency

Estimates, not guarantees.

Reinvesting $0
Taking cash $0
Difference $0

Taking cash includes portfolio + accumulated cash.

View breakdown

With DRIP (Reinvesting)
Estimated dividends (gross) $0
Dividends from reinvestment $0
Final-year dividend income $0/yr
Monthly average (final year) $0/mo
Without DRIP (Taking Cash)
Final portfolio value $0
Estimated dividends (gross) $0
Comparison
Difference (%) 0%
Investment Summary
Total contributions $0
Cumulative gain (with DRIP) 0%

View yearly projection

Year	Contributions	With DRIP	Without DRIP	Cash dividends	Annual income (DRIP)

Use your actual holdings: Portfolio Forecast →

About these estimates

DRIP buys more shares with payouts; taking cash keeps those payouts separate. This calculator compares both using your assumptions. Prices and payouts can fall; past distributions do not guarantee future income. Results are estimates, not investment advice.

Reinvested dividends can still be taxable in a taxable account. IRS guidance. Ticker mode uses your estimated tax rate; manual mode excludes taxes.

How manual mode works

The calculator simulates month by month. Contributions are added at the start of each month, dividends land on payment months (based on the selected frequency) on the portfolio value at that point, and share-price growth compounds monthly. In the DRIP scenario dividends immediately buy fractional shares; in the cash scenario they accumulate separately.

The dividend yield stays constant — dividends per share grow with the share price.
Cash dividends (without DRIP) earn 0% while accumulated.
Fractional shares are allowed; reinvestment has no fees.
Price growth excludes dividends and compounds each period.
Taxes, fees, and inflation are excluded. In a taxable account, reinvested dividends are generally still taxable income.
Results are in nominal (future) dollars.

Understanding DRIP

A Dividend Reinvestment Plan (DRIP) automatically uses your dividend payments to purchase additional shares instead of paying out cash. This creates a compounding effect where your reinvested dividends generate their own dividends, accelerating portfolio growth over time. The longer your investment horizon, the more powerful this snowball effect becomes. Many brokerages offer commission-free DRIP programs, and some companies even offer discounted share purchases through their direct DRIP programs.

Is it better to reinvest dividends or take cash?

Reinvesting usually ends ahead when prices are flat or rising, because each reinvested dividend buys shares that produce their own dividends. When prices decline over the whole period, reinvesting can end behind taking cash — the reinvested shares keep falling while cash holds its value. The comparison here assumes the cash earns nothing; parking it in an interest-bearing account would narrow the gap.

Does DRIP avoid dividend taxes?

No. In a taxable account, dividends are generally taxable in the year received even when automatically reinvested. Manual mode excludes taxes. Ticker mode applies your estimated tax-rate assumption to both scenarios; its default is 0%.

Does dividend payment frequency matter for DRIP?

Modestly, and in both directions. For a lump sum, more frequent payments reinvest sooner and compound slightly harder. With ongoing contributions the effect can reverse a little, because with a less frequent payer each new contribution still collects the full period’s dividend at the next payment. Either way, yield and growth assumptions matter far more than frequency.