Dividend Reinvestment (DRIP) Calculator

DRIP stands for Dividend Reinvestment Plan — instead of receiving dividend payments as cash, they are automatically used to purchase additional shares of the same stock.

Many modern brokerages and dividend reinvestment plans support fractional shares, so a dividend payout that doesn't cover a full share can still be reinvested. This calculator assumes fractional reinvestment is possible so the math compounds smoothly.

Cash dividends left uninvested don't generate further returns on their own. Reinvested dividends buy more shares, which can themselves earn future dividends and price appreciation — that compounding effect is what this calculator models.

Yes, it projects forward using the constant annual dividend growth rate and price appreciation rate you enter. Real-world returns fluctuate year to year, so treat the output as an illustrative projection rather than a guaranteed outcome.