How the Dividend Reinvestment Calculator works
Estimate growth from reinvested dividends. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this dividend reinvestment calculator to estimate how reinvested dividends may add to investment growth over time. It is useful for dividend portfolios where payouts are used to buy more shares instead of being spent.
Formula
Estimated growth rate = dividend yield + annual price growth
- Starting investment is the initial portfolio value.
- Dividend yield estimates annual dividends as a percentage of value.
- Annual price growth estimates share price appreciation.
- Years is the reinvestment period.
Worked example
For a $50,000 investment with a 4% dividend yield, 3% annual price growth and 10 years, the calculator estimates growth when dividends are reinvested.
Common mistakes
- Assuming dividend yields and prices stay constant.
- Ignoring dividend cuts, taxes or reinvestment timing.
- Treating high yield as automatically better than total return.
FAQs
Are reinvested dividends guaranteed?
No. Dividends can change and investment values can rise or fall.
Does this include taxes on dividends?
No. Taxes depend on account type and personal situation.
Why reinvest dividends?
Reinvestment can increase the amount invested, allowing future dividends and growth to compound.