Dividend Reinvestment Calculator: DRIP Growth 2026

Each dividend buys a few more shares — and those shares pay the next dividend

A dividend is cash your shares earn — and when you reinvest it, that cash buys more shares, which earn the next dividend. That is the whole compounding engine: the share count grows every year, and the growing share count earns a growing dividend. On the defaults — shares 100, price $50.00, dividend $2.00 per share, dividend growth 5%, price growth 7%, years 10 — the initial cost is $5,000.00, the price at year 10 is $98.36, the dividend in year 10 is $3.10 per share, the final shares with DRIP are 140.23, the final value with DRIP is $13,792.60, the cash dividends if not reinvested are $2,515.58, the value without DRIP is $12,351.34, the DRIP advantage is $1,441.26, the yield on cost (year 10) is 6.21% and the total return is 175.85%.

At the defaults — shares 100, price $50.00, dividend $2.00 per share, dividend growth 5%, price growth 7%, years 10 — the initial cost is $5,000.00, the price at year 10 is $98.36, the dividend in year 10 is $3.10 per share, the final shares with DRIP are 140.23, the final value with DRIP is $13,792.60, the cash dividends if not reinvested are $2,515.58, the value without DRIP is $12,351.34, the DRIP advantage is $1,441.26, the yield on cost (year 10) is 6.21% and the total return is 175.85%. Check the identities: cost = N × P; price at year Y = P × (1+s)^Y; dividend in year Y = D × (1+g)^(Y−1); shares evolve by (1 + D_t / P_t) each year; value = shares × price at year Y; cash = N × sum of yearly dividends; value without DRIP = N × price at year Y + cash; advantage = value with DRIP − value without; yield on cost = dividend in year Y ÷ P × 100; total return = (value − cost) ÷ cost × 100. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.

The worked example, line by line

Setup: shares 100, price $50.00, dividend $2.00 per share, dividend growth 5%, price growth 7%, years 10.

Line 1 — the cost. 100 × $50.00 = $5,000.00. That is the money you put in — it never changes, which is why the yield on cost keeps rising.

Line 2 — the price and the dividend in year 10. The price grows 7% a year: $50.00 × 1.07^10 = $98.36. The dividend grows 5% a year: $2.00 × 1.05^9 = $3.10 per share in year 10.

Line 3 — the shares. Each year the dividend buys more shares at that year’s price: shares_t = shares_(t−1) × (1 + D_t / P_t). After 10 years the 100 shares have become 140.23 — 40.23 extra shares, bought with dividends alone.

Line 4 — the value. 140.23 shares × $98.36 = $13,792.60. If you had taken the cash instead, the dividends add up to $2,515.58 and the 100 shares are worth $9,835.76 — a total of $12,351.34. So reinvesting is worth $1,441.26 more.

Line 5 — the yield on cost and the total return. Your $2.00 dividend on a $50.00 cost is 4.00% in year 1, but by year 10 the dividend is $3.10 on the same $50.00 cost — a yield on cost of 6.21%. The total return is ($13,792.60 − $5,000.00) ÷ $5,000.00 × 100 = 175.85%.

Reverse: the shares for a $20,000 final value are 145.01 shares (exact 145.0053 shares); at 145.01 shares the value is $20,000.64, at 145.00 shares it is $19,999.26. The share price for a $20,000 final value is $82.78 (exact $82.7754 — the UPPER root; value(P) is U-shaped with a minimum below $50, so a second, lower root exists below $50); at $82.78 the value is $20,000.88, at $82.77 it is $19,998.95. The dividend per share for a $15,000 final value is $2.51 (exact $2.5070); at $2.51 the value is $15,007.44, at $2.50 it is $14,982.72. The share-price growth for a $20,000 final value is 11.81% (exact 11.8067%); at 11.81% the value is $20,005.09, at 11.80% it is $19,989.59. The years to reach a $10,000 final value are 7 years; at 6 years the value is $9,260.25, at 7 years it is $10,239.23. The dividend growth for a $15,000 final value is 10.35% (exact 10.3489%); at 10.35% the value is $15,000.29, at 10.34% it is $14,997.63.

Every branch, checked

Shares 50: Shares 70.11, price year 10 $98.36, value $6,896.30, no-DRIP $6,175.67, advantage $720.63, yield on cost 6.21%, total return 175.85%. Half the shares, half the value — the advantage halves to $720.63 and the percentages stay the same.

Shares 500: Shares 701.15, price year 10 $98.36, value $68,962.98, no-DRIP $61,756.68, advantage $7,206.31, yield on cost 6.21%, total return 175.85%. Five times the shares, five times the value — the advantage is $7,206.31 and the total return is still 175.85%.

Price $25: Shares 194.47, price year 10 $49.18, value $9,563.98, no-DRIP $7,433.46, advantage $2,130.53, yield on cost 12.41%, total return 282.56%. A cheaper share means each dividend buys twice as many shares — the share count jumps to 194.47 and the value is $9,563.98 on half the cost, a total return of 282.56%.

Price $100: Shares 118.59, price year 10 $196.72, value $23,328.09, no-DRIP $22,187.09, advantage $1,141.00, yield on cost 3.10%, total return 133.28%. A dearer share means each dividend buys half as many shares — the share count is only 118.59 and the value is $23,328.09 on twice the cost, a total return of 133.28%.

Dividend $0: Shares 100.00, price year 10 $98.36, value $9,835.76, no-DRIP $9,835.76, advantage $0.00, yield on cost 0.00%, total return 96.72%. No dividend, no reinvestment — the share count stays 100.00 and the advantage is $0.00.

Dividend $4: Shares 194.47, price year 10 $98.36, value $19,127.96, no-DRIP $14,866.91, advantage $4,261.05, yield on cost 12.41%, total return 282.56%. Twice the dividend doubles the reinvestment — the share count is 194.47 and the value is $19,127.96.

Dividend growth 0%: Shares 131.91, price year 10 $98.36, value $12,974.08, no-DRIP $11,835.76, advantage $1,138.33, yield on cost 4.00%, total return 159.48%. A flat dividend still compounds through the share count — the value is $12,974.08 and the yield on cost is 4.00%.

Dividend growth 10%: Shares 151.57, price year 10 $98.36, value $14,908.09, no-DRIP $13,023.24, advantage $1,884.85, yield on cost 9.43%, total return 198.16%. A dividend that grows 10% a year lifts the value to $14,908.09 and the yield on cost to 9.43%.

Price growth 0%: Shares 163.34, price year 10 $50.00, value $8,166.84, no-DRIP $7,515.58, advantage $651.26, yield on cost 6.21%, total return 63.34%. The price never moves, but the share count still grows to 163.34 — DRIP adds $651.26 through share count alone.

Price growth 12%: Shares 130.73, price year 10 $155.29, value $20,301.93, no-DRIP $18,044.82, advantage $2,257.11, yield on cost 6.21%, total return 306.04%. A price that grows 12% a year lifts the value to $20,301.93 — but each dividend buys fewer shares, so the share count is only 130.73.

5 years: Shares 119.35, price year 5 $70.13, value $8,369.72, no-DRIP $8,117.88, advantage $251.84, yield on cost 4.86%, total return 67.39%. Five years is barely enough for the compounding to show — the advantage is only $251.84.

20 years: Shares 185.69, price year 20 $193.48, value $35,927.31, no-DRIP $25,961.61, advantage $9,965.69, yield on cost 10.11%, total return 618.55%. Twenty years is where DRIP earns its keep — the value is $35,927.31 and the advantage is $9,965.69.

30 years: Shares 234.42, price year 30 $380.61, value $89,223.28, no-DRIP $51,349.04, advantage $37,874.24, yield on cost 16.46%, total return 1,684.47%. Thirty years turns $5,000.00 into $89,223.28 — a total return of 1,684.47% and an advantage of $37,874.24 over taking the cash.

What the defaults assume

The model assumes fractional shares — most brokers offer them for DRIP, so the 0.23 of a share in the 140.23 is real. It assumes the dividend grows every year at the rate you enter and is never cut, and that the share price grows every year at the rate you enter — it does not model taxes, fees, dividend cuts, or a price that falls. It assumes the dividend is paid once a year at year-end on the shares held during that year. With 0 years the shares are 100.00 and the value is $5,000.00 — the initial cost, no year has passed — and the yield on cost is — (no dividend year yet; the calc accepts Y = 0 and renders the value, the yield field shows “—”). With a $0 dividend the shares stay 100.00 and the value is $9,835.76. With 0% price growth the shares are 163.34 and the value is $8,166.84 — DRIP still adds value through share count alone. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum; the reverses are nearest-value solutions, and the exact unrounded figures (145.0053, $82.7754, $2.5070, 11.8067, 10.3489) are stated wherever the rounded figures appear.

Output · formula · meaning

Who uses this

• The investor with 100 shares at $50: they learn reinvesting turns $5,000.00 into $13,792.60 in 10 years — and they check the $20,000 reverse (145.01 shares) to see how many shares they need to clear $20,000.
• The holder of a $25 stock: they learn a cheaper share buys more shares with each dividend — 194.47 shares after 10 years — and they check the $100 branch (118.59 shares) to see the same dividend buy half as much.
• The saver with a flat share price: they learn DRIP still adds $651.26 when the price never moves — and they check the 30-year branch ($37,874.24) to see what three decades of reinvestment are worth.
• The planner asking how long: they learn it takes 7 years to reach $10,000 — and they check the 20-year branch ($35,927.31) to see the compounding accelerate.

Accuracy & limitations

The math is first-principles dividend compounding: price P_t = P × (1+s)^t; dividend D_t = D × (1+g)^(t−1); shares_t = shares_(t−1) × (1 + D_t / P_t); final value = shares_Y × P_Y; cash dividends = N × sum(D_t); value without DRIP = N × P_Y + cash; yield on cost = D_Y / P × 100; total return = (value − cost) / cost × 100. The 4-decimal exact is shown where the rounding matters: the shares for a $20,000 final value are 145.0053 (shown as 145.01 shares); at 145.01 shares the value is $20,000.64, at 145.00 shares it is $19,999.26. The share price for a $20,000 final value is $82.7754 (shown as $82.78 — the UPPER root); at $82.78 the value is $20,000.88, at $82.77 it is $19,998.95. What the model cannot do is predict a dividend: a company can cut its dividend, the price can fall faster than the dividends compound, and taxes take a cut of every dividend whether you reinvest it or not. Reinvesting only wins when the share price does not fall faster than the dividends compound. For the dividend itself, see the dividend calculator and the dividend yield calculator; for the compounding behind it, see the compound growth calculator. This is a calculator, not investment advice.