Investment Calculators
Dividend Reinvestment Calculator
Model a DRIP: dividends buying more shares, those shares paying more dividends, compounding alongside share price growth.
Value with reinvestment
$113,093
- Value without reinvestment
- $54,778
- Added by reinvesting
- $58,315
- Income in the final year
- $4,388
How this calculator works
Each year: value × (1 + price growth) + dividends reinvested at the prevailing yield
- yield
- dividends as a share of value, growing at the dividend growth rate
Example calculation
Illustrative example — not advice
Worked example — the dividend reinvestment calculator as it loads, using the default figures below.
- 01Enter initial investment: $25,000.
- 02Enter dividend yield: 3.5%.
- 03Enter dividend growth: 5%.
- 04Enter share price growth: 4%.
- 05Enter years: 20 years.
- 06Read the value with reinvestment from the results panel: $113,093.
Value with reinvestment: $113,093. Value without reinvestment: $54,778. Added by reinvesting: $58,315. Income in the final year: $4,388.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- Assumes dividends are reinvested in full with no tax or dealing costs.
- Yield is applied to the running value, which is a simplification.
Related calculators
- Dividend CalculatorDividend income, yield and payment per period.
- Investment CalculatorProjected value of contributions and returns over time.
- Compound Interest CalculatorProject the growth of a balance with compounding and regular contributions.
- Future Value CalculatorWhat a sum today is worth in the future.
- ROI CalculatorTotal and annualised return on any investment.
- CAGR CalculatorCompound annual growth rate between two values.
Terms used here
Frequently asked questions
How much does reinvesting actually add?
Over long periods reinvested dividends often account for a large share of total return.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01