Free Tool
DRIP Calculator
See how dividend reinvestment compounds your income over time. Enter any stock's yield and watch the snowball grow.
Your inputs
Starting annual income
$400
Income after 20 yrs
$889
Total dividends received
$12.5K
Portfolio value
$22.2K
Annual dividend income
2.2× with DRIPAssumes constant yield and price · yield capped at 25%/yr · for illustration only, not financial advice
The concept
How DRIP compounding works
Earn dividends
Your dividend stocks, ETFs, or REITs pay cash dividends — typically quarterly or monthly.
Reinvest automatically
Instead of taking the cash, dividends are used to purchase more shares of the same investment — even fractional shares.
Compounding snowball
More shares means more dividends next quarter. Those dividends buy even more shares. Over decades, this compounds dramatically.
FAQs
Questions about DRIP
DRIP stands for Dividend Reinvestment Plan. Instead of taking your dividends as cash, you automatically use them to buy more shares of the same stock. Over time, those extra shares pay dividends too — creating a compounding snowball effect.
Enter your initial investment, the stock's annual dividend yield, and the share price. The calculator shows how your annual dividend income grows year-over-year assuming dividends are reinvested at the current yield and price.
This simulates adding new money every month (like a salary contribution). New shares are purchased at the current price, then those shares also earn dividends that get reinvested. It dramatically accelerates your snowball.
No. This calculator assumes constant prices and yields, which never happens in reality. It's a planning tool to illustrate the power of compounding — not a financial forecast. Yields above 25% are capped to prevent unrealistic results from stale data.
Yes — Safe Dividend Tracker lets you add your real holdings and see this exact snowball chart powered by live data from your portfolio. It's free to start.
Track your real dividend snowball
Add your actual holdings and see this projection powered by live data — free forever.
Start Tracking FreeFree plan forever · No credit card required