HisabCalc › Country-specific

Dividend Reinvestment Calculator

Compare the value of reinvesting dividends back into a holding against letting it grow on price alone.

Enter your numbers

Principal

Example: 100000

Dividend yield

Example: 5

Price growth

Example: 6

Years held

Example: 10

Reinvest dividends

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

totalReturn = (dividendYield / 100) * reinvest + priceGrowth / 100; dripValue = principal * (1 + totalReturn)^years; priceOnlyValue = principal * (1 + priceGrowth / 100)^years; extraValue = dripValue - priceOnlyValue

How the calculation works

The calculator works out the total yearly return by combining the dividend yield with the price growth when you reinvest.

It compounds that combined return over the years you hold and also compounds price growth alone for comparison.

It subtracts the price only figure from the reinvested figure to show the extra value the dividends added.

Common mistakes

Adding the dividend yield and price growth as plain numbers instead of compounding them together each year.
Forgetting that reinvested dividends are taxed, so the real advantage over spending them is smaller than shown.

When to use it

Use it to see the long run gap between reinvesting dividends and spending them each year.
Use it to estimate the extra value compounding dividends adds when you set the reinvest option to yes.

Worked example

With 100,000 at a 5 percent dividend yield and 6 percent price growth over 10 years, reinvesting gives 283,942 against 179,085 without, an extra 104,857.

DRIP value 283,942.10

Price-only value 229,084.77

Extra from reinvesting 54,857.33

Common questions

Does reinvesting dividends always beat taking the cash?

For long holding periods compounding usually wins, but if you need the income now then taking the cash is the sensible choice.

Last updated: 2026-10-03