Dividend Reinvestment Calculator
See how compound interest and dividend growth can accelerate your journey to financial independence. Adjust the inputs below to build your custom projection.
Dividend Reinvestment (DRIP) Simulator
Interactive compound interest & dividend growth modeler. Adjust inputs to see long-term projections.
Presets:
Ending Portfolio
$535,481
Contributions: $130,000
Annual Payout (Yr 20)
$48,508
~$4,042/month
Why Use a Dividend Calculator?
The true power of dividend investing isn't just the yield you receive today—it's the exponential growth that happens when you reinvest those dividends over time. This concept, known as a Dividend Reinvestment Plan (DRIP), allows you to buy more shares, which in turn pay out more dividends.
Understanding the Inputs
- Initial Investment: Your starting portfolio balance today.
- Monthly Contribution: The amount of fresh capital you plan to add to your portfolio every month.
- Dividend Yield: The average starting yield of your portfolio (e.g., SCHD is typically around 3.5%).
- Dividend Growth Rate: How much the companies increase their dividend payout each year (e.g., 6-10%).
- Price Appreciation: The expected annual growth of the stock price itself, separate from the dividend.
Disclaimer: This calculator is for educational and illustrative purposes only. It assumes constant growth rates and does not account for taxes, fees, or market volatility. Real-world returns will vary.