DRIP Calculator Dividend Reinvestment Returns
See how dividends reinvestment impacts your total return
Discover the power of compound growth through dividend reinvestment. Calculate how reinvesting your dividends can significantly boost your portfolio value over time.
DRIP Calculator
Dividend Reinvestment Plan
Amount you initially invest
Price per share at start
Current dividend yield percentage
Expected annual dividend growth
Expected annual stock price growth
Duration of investment
Final Portfolio Value
₹0.00
0 shares
Total Returns
₹0.00
0% gain
Total Dividends Received
₹0.00
Reinvested automatically
Initial Investment
₹100,000.00
1000.0000 initial shares
Portfolio Growth Over Time
💡 Pro Tip: Dividend aristocrats - companies that have increased dividends for 25+ consecutive years - can be excellent DRIP candidates. Consider dividend yield, growth rate, and company fundamentals.
Understanding Dividend Reinvestment
Learn how DRIP (Dividend Reinvestment Plan) can accelerate your wealth creation
What is DRIP?
- Automatically reinvests dividend payments to purchase more shares
- Compounds your wealth through buying fractional shares
- Often commission-free with direct stock purchase plans
- Provides dollar-cost averaging benefits automatically
Key Benefits
- Accelerates wealth through exponential compound growth
- Eliminates timing decisions - automatic and disciplined
- Reduces transaction costs and taxes on dividend income
- Builds position during market downturns automatically
Best DRIP Candidates
- ✓ Dividend aristocrats with 25+ years of growth
- ✓ Companies with sustainable payout ratios (40-60%)
- ✓ Strong cash flow and consistent earnings growth
- ✓ Established companies in stable industries
Important Considerations
- ! Dividends are still taxable even when reinvested
- ! Track cost basis for accurate tax reporting
- ! Monitor company fundamentals and dividend health
- ! Diversify across sectors to manage risk
How Our Calculator Works
Understanding the mathematics behind dividend reinvestment
Initial Setup
Start with your initial investment amount and stock price to determine the number of shares you own.
Annual Dividends
Calculate dividends based on yield and number of shares. Dividends grow annually based on growth rate.
Reinvestment
Dividends are automatically used to purchase additional shares, increasing your total position.
The Formula
Our calculator uses these key formulas for each year:
Annual Dividends = Shares × Stock Price × Dividend Yield New Shares = Annual Dividends ÷ Current Stock Price Total Value = Total Shares × Current Stock Price Note: Stock price and dividend per share grow annually based on your specified growth rates.
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