About this calculator

How-to: enter starting investment, dividend yield, expected dividend growth rate and share price appreciation. Each year, dividends buy more shares, which pay more dividends — the classic compounding wheel. Historical S&P 500 dividend growth ~6%/yr; UK dividend growth ~3–4%. High-yield sectors (utilities, REITs) grow dividends more slowly.

Frequently asked questions

DRIP vs pocketing dividends?

Over 30+ years, reinvesting dividends typically doubles total return vs taking them in cash (per Ibbotson S&P 500 data 1926–2023). If you need the income now, take them; otherwise reinvest.

Is a high yield always better?

No — ultra-high yields (8%+) often signal distress or slow dividend growth. Dividend Aristocrats (25+ years of growth) typically yield 2–3% but grow the dividend 6–10% annually, outperforming high-yield in total return.

How are DRIP dividends taxed?

Reinvested dividends are still taxable in the year received (unless held in an ISA / Roth IRA / PEA). Track your cost basis carefully — each reinvestment creates a new tax lot.

What does the Dividend Reinvestment (DRIP) Growth Calculator do?

Model long-term wealth growth from a dividend-paying stock or ETF with automatic dividend reinvestment, including dividend growth over time. How-to: enter starting investment, dividend yield, expected dividend growth rate and share price appreciation. Each year, dividends buy more shares, which pay more dividends — the classic compounding wheel. Historical S&P 500 dividend growth ~6%/yr; UK dividend growth ~3–4%. High-yield sectors (utilities, REITs) grow dividends more slowly.

Is the Dividend Reinvestment (DRIP) Growth Calculator free to use?

Yes. Every calculator on Calcurly.com is free, works in your browser without sign-up, and can be embedded on your own website.

How accurate is the Dividend Reinvestment (DRIP) Growth Calculator?

Results are calculated in real time using industry-standard formulas. Treat the output as a well-informed estimate — always cross-check with local regulations, product datasheets, or a qualified finance professional before committing to a purchase or a job.

What inputs does the Dividend Reinvestment (DRIP) Growth Calculator need?

Enter values for: Initial investment, Starting dividend yield (%), Annual dividend growth (%), Annual share price appreciation (%), Years, Dividend tax rate (%). Sensible defaults are pre-filled where possible so you can start with a single change.

Can I embed the Dividend Reinvestment (DRIP) Growth Calculator on my own website?

Yes — copy the iframe snippet at the bottom of this page, or use the Embed Generator to customise the size. The embedded version stays in sync with the live calculator on Calcurly.com.