Dividend Reinvestment Calculator
See how dividend yield, dividend growth, and reinvesting dividends may shape long-term portfolio growth and future income.
What this calculator shows
It projects a portfolio that grows through price appreciation and dividends, where the dividend yield itself grows over time. You can reinvest dividends to compound them, or take them as cash, and compare the two. Every input is an assumption — not a forecast or advice.
Inputs
Set your assumptions for growth, yield, and dividend growth, then choose whether to reinvest.
What you start with today.
Added at the end of each month.
How long the portfolio compounds.
Price growth only, compounded monthly.
Annual dividends as a percent of value.
How fast the yield grows each year.
Used to estimate purchasing power.
Yes reinvests dividends to compound them. No takes them as cash.
Share or bookmark this scenario.
- Final portfolio value
- $2,143,683
- Total dividends received
- $1,305,577
- Annual dividend income (final year)
- $235,616
- Monthly dividend income (final year)
- $19,635
- Inflation-adjusted value
- $1,021,985
- Gain from reinvesting
- $1,692,776
Dividends reinvested.
All reinvested.
At a 12.3% yield.
Final-year annual income ÷ 12.
In today's dollars.
Vs. taking dividends as cash.
- Portfolio value
- In today's dollars
Projected portfolio value over time, in nominal and inflation-adjusted terms.
- Annual dividend
The dividend paid each year, which rises as both the portfolio and the yield grow.
- Cumulative dividends
The running total of every dividend paid across the projection.
Year-by-year breakdown
Portfolio value, yield, dividends, and purchasing power for each year.
| Year | Portfolio value | Dividend yield | Annual dividends | Cumulative dividends | Value (real) |
|---|---|---|---|---|---|
| 1 | $17,135 | 3% | $499 | $499 | $16,717 |
| 2 | $24,888 | 3.2% | $760 | $1,259 | $23,689 |
| 3 | $33,336 | 3.3% | $1,067 | $2,326 | $30,956 |
| 4 | $42,568 | 3.5% | $1,429 | $3,755 | $38,565 |
| 5 | $52,687 | 3.6% | $1,854 | $5,609 | $46,567 |
| 6 | $63,810 | 3.8% | $2,353 | $7,962 | $55,024 |
| 7 | $76,078 | 4% | $2,940 | $10,902 | $64,001 |
| 8 | $89,649 | 4.2% | $3,631 | $14,533 | $73,579 |
| 9 | $104,712 | 4.4% | $4,444 | $18,978 | $83,846 |
| 10 | $121,486 | 4.7% | $5,403 | $24,380 | $94,905 |
| 11 | $140,230 | 4.9% | $6,533 | $30,913 | $106,876 |
| 12 | $161,248 | 5.1% | $7,870 | $38,783 | $119,897 |
| 13 | $184,899 | 5.4% | $9,452 | $48,236 | $134,129 |
| 14 | $211,610 | 5.7% | $11,330 | $59,565 | $149,762 |
| 15 | $241,888 | 5.9% | $13,562 | $73,127 | $167,016 |
| 16 | $276,342 | 6.2% | $16,223 | $89,350 | $186,151 |
| 17 | $315,699 | 6.5% | $19,403 | $108,754 | $207,476 |
| 18 | $360,835 | 6.9% | $23,215 | $131,969 | $231,355 |
| 19 | $412,811 | 7.2% | $27,797 | $159,766 | $258,224 |
| 20 | $472,912 | 7.6% | $33,324 | $193,091 | $288,604 |
| 21 | $542,708 | 8% | $40,014 | $233,104 | $323,121 |
| 22 | $624,119 | 8.4% | $48,140 | $281,244 | $362,529 |
| 23 | $719,510 | 8.8% | $58,048 | $339,293 | $407,744 |
| 24 | $831,802 | 9.2% | $70,180 | $409,473 | $459,883 |
| 25 | $964,625 | 9.7% | $85,097 | $494,570 | $520,310 |
| 26 | $1,122,513 | 10.2% | $103,520 | $598,090 | $590,705 |
| 27 | $1,311,155 | 10.7% | $126,380 | $724,470 | $673,146 |
| 28 | $1,537,733 | 11.2% | $154,884 | $879,354 | $770,216 |
| 29 | $1,811,363 | 11.8% | $190,607 | $1,069,961 | $885,143 |
| 30 | $2,143,683 | 12.3% | $235,616 | $1,305,577 | $1,021,985 |
Reinvesting leaves the portfolio $1,692,776 higher than taking the cash, and by year 30 it pays $235,616 a year.
Income grows two ways
Dividend income grows because both the portfolio and the dividend yield increase over time.
Reinvesting compounds
Reinvesting added $1,692,776 to the portfolio versus taking dividends as cash, because each reinvested dividend compounds future payments.
Future income
Under these assumptions, dividend income reaches $235,616 a year ($19,635 a month) by year 30.
Yield is only one part
Yield alone does not determine total return — price appreciation matters too, and a high yield is not automatically better.
Growth can beat yield
Under these assumptions, a lower yield that grows faster can eventually out-earn a higher yield that stays flat.
Inflation still applies
Inflation reduces the purchasing power of both the portfolio and the dividend income it produces.
Dividend assumptions are hypothetical. Real dividends may increase, decrease, or stop entirely. This model assumes a steady return and does not account for taxes, payout ratios, share-price drag, dividend cuts, or fees.
You might also like
Dividend Income Calculator
See how much you need invested to earn a target income in dividends — or the income a portfolio produces at a given yield.
Try the Dividend Income CalculatorHow this calculator works
An educational model, not a forecast. Price appreciation compounds monthly, contributions are added at the end of each month, and dividends are paid once a year at a yield that grows annually.
What dividend yield means
The annual dividend paid as a percentage of the portfolio's value. A 3% yield on $100,000 pays about $3,000 a year.
What dividend growth means
How fast the dividend rises each year. Growing dividends can lift income over time even if you never add new money.
What reinvesting means
Using each dividend to buy more of the portfolio, so the next dividend is paid on a larger base — compounding the income.
Total return
Total return combines price appreciation and dividends. Dividends are part of that return, not a bonus on top of it.
Why yield is not free money
In reality, paying a dividend typically lowers a share's price. A high yield is not extra return — it is part of total return.
Why yield alone is not quality
A high yield can signal a struggling company. Dividend safety, growth, and total return matter more than yield by itself.
Related concepts
Keep exploring the ideas behind dividend investing.
Frequently asked questions
Common questions about dividend reinvestment, yield, and total return.
What is dividend reinvestment (DRIP)?
Dividend reinvestment means using the dividends an investment pays to buy more of it, instead of taking them as cash. Those extra shares then earn their own dividends, which can compound into a growing income stream over time.
How is dividend reinvestment calculated here?
The tool grows your investment through monthly-compounded price appreciation plus an annual dividend whose yield can grow each year. A Yes/No toggle compares reinvesting the dividends against taking them as cash, so you can see the difference side by side.
Should I reinvest dividends or take them as cash?
It depends on whether you need the income now. Reinvesting can accelerate long-term growth through compounding; taking cash provides income today. This tool shows both paths under your assumptions so you can weigh the trade-off — it does not recommend one.
What are dividend yield and dividend growth?
Dividend yield is the annual dividend as a percentage of the price. Dividend growth is how much that dividend increases each year. Together they shape how much income an investment produces and how quickly that income rises.
Are dividends free money?
No. A dividend is part of total return, not a bonus on top of it — when a company pays a dividend, its value typically drops by roughly that amount. A high yield is also not automatically a sign of quality. What matters is total return: price change plus income.
Does this include taxes?
No. Dividends and gains can be taxed depending on your account and country, which would reduce real-world results. This model is educational and ignores taxes and fees.
This is one of several educational models on Rionux. See how we model these projections across all our tools.
Continue your journey
Related tools and guides to help you decide what to explore next.
Related tools
Dividend Income Calculator
See how much you need invested to earn a target income in dividends — or the income a portfolio produces at a given yield.How much for $X a month in dividends?GrowTotal Return Calculator
See your complete return from price gains plus income like dividends, and what it works out to per year.What did I actually earn, all in?GrowCompound Interest Calculator
Understand how time, contributions, returns, and inflation shape long-term wealth.What will this grow to?GrowHow Much Can I Buy Calculator
See how many shares, ETF units, or crypto your budget buys at any price — and how many fewer units a higher price costs.How much does my budget buy?PortfolioPortfolio Allocation Calculator
Split your money across assets and see your weighted return, concentration, and long-term growth after inflation.What does this asset mix return?Related guides
- Dividend Yield vs Dividend Growth7 min readDividend yield is the income a stock pays now; dividend growth is how fast that payment rises. The tradeoff, and how reinvestment changes it.
- Total Return vs Price Return6 min readTotal return counts price change plus dividends reinvested; price return counts only price. How the two differ and when each is used.
- How Compound Interest Works: A Beginner's Guide6 min readWhy time matters more than the return rate, and how to put consistent long-term investing to work in your favour — with scenarios you can run yourself.
- Why Inflation Matters5 min readWhy long-term investors judge returns after inflation, what that does to a plan built on nominal numbers, and how to think about staying ahead of it.
Get new calculators in your inbox
Occasional emails when we ship a new tool or guide. No spam, unsubscribe anytime.
Educational use only
Educational purposes only. Calculator results are estimates based on assumptions and user inputs. They are not financial, investment, legal, or tax advice. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results.