Dividend reinvestment (DRIP) calculator
See the difference between reinvesting your dividends - putting them into more shares - and taking them as cash. Free, no sign-up, education only.
= - of shares + - paid out as cash over the years.
Reinvesting turned into about - more - that's the growth your reinvested dividends earned on top.
An illustration of how reinvesting compounds, not a forecast or advice. It assumes a steady yearly price growth and dividend, and that you actually reinvest every dividend; real markets are bumpy, dividends can be cut, and it ignores fees and tax. The ‘cash’ figure assumes the cash is simply kept, not spent or invested elsewhere.
Why reinvesting matters
When you reinvest a dividend it buys more shares - and those shares then earn their own dividends and their own growth. Over years, that compounding on your dividends can add up to a surprising amount. It's exactly what an accumulating fund does for you automatically, without you lifting a finger.
Taking the cash isn't wrong - sometimes the income is the whole point. It's simply a different choice, and this shows you the long-run trade-off. See growth another way with the growth calculator or the fee calculator.