Dividend Reinvestment Plan (DRIP) Calculator
| Year | Portfolio | Annual income (net) | Monthly | YoC | Goal progress |
|---|---|---|---|---|---|
| +1y | €222 330 | €7 682 | €640 | 3.7% | 26% |
| +3y | €273 054 | €9 760 | €813 | 4.5% | 33% |
| +5y | €333 283 | €12 342 | €1 028 | 5.4% | 41% |
| +10y | €540 074 | €21 877 | €1 823 | 8.4% | 73% |
| +15y | €867 797 | €38 284 | €3 190 | 13.2% | 100% |
| +20y | €1 396 686 | €66 515 | €5 543 | 20.8% | 100% |
| +25y | €2 263 095 | €115 092 | €9 591 | 32.9% | 100% |
Plug in your real numbers
Create a free account, add your holdings, and the calculator runs against your actual portfolio value, blended yield, and tax residence.
How this calculator works
Set six inputs: your starting balance, dividend yield, dividend growth rate, monthly contribution, income target and dividend tax rate. The calculator projects your portfolio value and your net dividend income year by year, up to 40 years out, and marks the year you reach your target.
Three paths, one chart
Most calculators draw one optimistic line. This one draws three: spend every dividend, reinvest them (DRIP), or reinvest and add fresh money every month. The gap between the lines is the case for reinvesting, drawn to scale. Each reinvested payout buys shares that pay dividends of their own, the loop investors call the dividend snowball.
Tax is in the math, not a footnote
Dividends are reinvested with post-tax cash, so a projection that ignores tax overstates how fast your income grows. This one nets out the dividend tax first, seeded from the tax model of your country of residence, and the rate is yours to drag: set it to 0% to model an ISA, PEA, TFSA or another tax wrapper.
Questions about dividend reinvestment
What is DRIP?
DRIP stands for dividend reinvestment plan. Instead of taking your dividends as cash, you put them straight back into more shares of the same company. Those shares pay dividends of their own, so every payout quietly raises the next one.
Does reinvesting dividends really make a difference?
Over a few years, barely. Over decades it is the difference between an income that stands still and one that compounds. Drag the horizon slider from 5 years to 40 and watch the three lines pull apart.
What is yield on cost (YoC)?
Your annual dividend income divided by what you originally paid, rather than by today's price. A share bought at a 4% yield that has since doubled its dividend pays you 8% on your original cost. The year-by-year table tracks YoC climbing as growth and reinvestment compound.
Can I model a tax-free account?
Yes. Drag the dividend tax slider to 0% for an ISA, PEA, TFSA or similar wrapper, or to any rate you want to stress-test. The projection redraws instantly and nothing is saved to your profile.
How accurate is the projection?
It is arithmetic, not a forecast. The result is only as good as the yield and growth rate you feed it, so use it to compare scenarios and stress-test a plan rather than to predict an exact figure. Dividends can be cut and share prices can fall.
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