Dividend & DRIP Calculator

How it works

The calculator steps period by period (monthly, quarterly, semi-annual or annual). Each period it pays a dividend on your current shares. With DRIP on, that dividend buys more shares, which earn more dividends next period: the compounding that makes reinvestment powerful. With DRIP off, dividends accumulate as cash.

Dividend growth and share-price appreciation step annually (constant within a year), so the per-period figures are easy to verify. Contributions are split evenly across periods and always buy shares, whether or not DRIP is on.

Worked example

Invest $10,000 at $100/share (100 shares) with a $4.00 annual dividend paid quarterly ($1.00/quarter), DRIP on, for one year, no growth or tax:

• Q1: 100 sh × $1 = $100 → buys 1 share → 101 shares.
• Q2: 101 × $1 = $101 → 1.01 sh → 102.01; Q3 → 103.0301; Q4 → 104.060401 shares.
• Ending value = 104.060401 × $100 = $10,406.04; total dividends $406.04.

With DRIP off the same inputs end at $10,400. The $6.04 difference is one year of reinvestment compounding, and it grows fast over longer horizons.

The formula

per period: dividend = shares × (annual_div / frequency)
if DRIP:  shares += dividend_after_tax / share_price
else:     cash   += dividend_after_tax
ending value = shares × final_price + cash

FAQ

What does DRIP do?

It reinvests each dividend into more shares automatically, compounding your share count and future income.

Does it handle dividend growth and contributions?

Yes, set an annual dividend growth rate and a regular contribution; both are optional.

Is this after tax?

You can enter a dividend tax rate; leave it at 0 for a pre-tax projection. To split qualified vs ordinary rates, use the dividend tax calculator. It's an estimate, not tax advice.

What is yield on cost?

Your current annual dividend per share divided by the price per share you originally paid. As the company raises its dividend, your yield on cost climbs above the yield a new buyer gets today. It's a per-share measure, so reinvesting (DRIP) or buying more shares doesn't change it.

How do I calculate monthly dividend income?

Take your annual dividend per share, multiply by your shares, and divide by 12. For example, 1,000 shares paying $2.40 a year is $2,400 ÷ 12 = $200 a month. Turn DRIP off to see the cash paid out rather than reinvested.