ComputeYard

The math, explained — built by a derivatives quant.

Dividend & DRIP Calculator

Project your dividend income and portfolio value over time — with or without DRIP reinvestment, plus optional dividend growth, regular contributions and tax.

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. It's an estimate, not tax advice.

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