What this dividend calculator does
This dividend calculator shows what a dividend-paying portfolio could turn into over time. Punch in what you start with, what you add each month, and the yield you expect, and it projects your dividend income year by year. Flip one switch to reinvest those dividends (a DRIP) or take them as cash. You get a clear picture of where your money lands, with no live stock prices and no signup.
Enter your starting amount
Type your initial investment, the money you already have in the market or plan to put in on day one.
Add your monthly contribution
Set the amount you'll add every month. Leave it at $0 if you're only investing a lump sum.
Set your dividend yield
Enter the dividend yield % you expect. That's the annual dividend divided by the share price. Many large U.S. dividend payers sit somewhere between 2% and 5%.
Add your growth rates
Fill in annual dividend growth % (how fast the payout rises) and annual share-price growth % (how fast the share value climbs). Modest numbers keep your projection honest.
Choose your time frame
Set the number of years you want to project. Longer runs show the compounding more clearly.
Pick reinvest or payout
Choose Reinvest to run it as a DRIP, where dividends buy more shares, or Payout to collect the cash. Then read your results in the summary, the yearly table, and the chart.
How the math works
Each year the tool multiplies your dividend yield by your invested balance to get that year's income. In Reinvest mode, that income buys more shares, so the next year's dividend is figured on a larger balance. Your dividend growth rate nudges the payout up, and the share-price growth rate lifts the value of what you hold.
Here's a quick run. Say you start with $10,000, add $250 a month, and set a 4.0% dividend yield. Year one pays about $400 in dividends ($10,000 × 4%). Keep the mode on Reinvest, layer in 5% dividend growth and 6% share-price growth, and stretch it over 20 years. The yearly table shows your income rising on every row, the chart tracks your portfolio climbing, and the summary reports your final-year income, total dividends collected, end portfolio value, and your yield-on-cost (this year's dividends measured against what you actually paid in).
Reinvest or take the cash?
Reinvesting is how small dividends snowball. Every payout buys more shares, those shares pay their own dividends, and the cycle feeds itself. Over a long stretch, that compounding does most of the heavy lifting.
Taking the cash makes sense when you actually need the income, say in retirement, or when you'd rather put the money somewhere else. Run the tool both ways and compare the cash collected figure against the end portfolio value. The gap between the two is what reinvesting bought you.
What to plan for before you trust the number
A projection is only as good as the numbers you feed it. A few things to keep in mind:
Taxes. This tool doesn't subtract them. In a regular brokerage account, qualified and ordinary dividends are taxed at different rates, and holding shares in a 401(k) or IRA changes the picture again. Check how your own dividends are taxed before you count on the full amount.
Yields move. A 4% yield today won't hold forever. Companies raise, cut, or freeze dividends, and share prices swing the yield around.
Your growth guesses. Past growth doesn't promise future growth. Pick steady, realistic rates rather than the best year you can find.
Inflation. A dividend stream that looks big in 20 years buys less than it does today. Dividend growth that beats inflation is what keeps your income's real value intact.
Tips for a realistic projection
Use a conservative yield. Chasing a 9% or 10% yield often signals a stock in trouble, not a bargain.
Keep dividend growth modest. Many reliable U.S. payers raise their dividend in the low-to-mid single digits each year.
Reinvest early and let time work. The longer your DRIP runs, the more the compounding shows up in the final years.
Test a few scenarios. Run an optimistic, a middle, and a cautious version so you know the range you're dealing with.
Revisit it yearly. Update the yield and your balance as real life unfolds, then re-run the numbers.
Dividend calculator FAQ
What is a dividend reinvestment (DRIP) calculator?
A DRIP calculator projects what happens when your dividends automatically buy more shares instead of paying out as cash. Each reinvested dividend grows your share count, which lifts your next dividend. This tool runs that loop for as many years as you set, so you can see how reinvestment compounds over time.
How is dividend income calculated?
Your annual dividend income is your dividend yield multiplied by the value of your holdings. For example, $20,000 invested at a 4% yield pays $800 a year. As your balance grows from contributions, reinvestment, or rising share prices, that income grows with it.
What dividend yield should I use?
Use a yield that matches the kind of investments you hold. Broad U.S. dividend funds and many blue-chip payers land roughly between 2% and 5%. Very high yields can be a warning sign, so lean conservative if you're unsure.
Does this dividend calculator include taxes?
No. It projects pre-tax figures only. How your dividends are taxed depends on the account (a taxable brokerage versus a 401(k) or IRA) and whether they're qualified or ordinary dividends. Factor your own tax situation in before relying on the totals.
What does yield on cost mean?
Yield on cost compares this year's dividends to the money you actually invested, not today's market value. If you put in $10,000 and now collect $700 a year, your yield on cost is 7%. It's a handy way to see how much your reinvesting and dividend growth have paid off.
Should I reinvest dividends or take them as cash?
Reinvesting usually builds more wealth over long periods thanks to compounding. Taking the cash makes sense when you need the income now or want to invest it elsewhere. Run the calculator in both Reinvest and Payout modes and compare the results to decide what fits your goals.
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