Free tool
DRIP Calculator
See what reinvesting every distribution is actually worth. This dividend reinvestment calculator runs your scenario period by period — every payout buys new shares, new shares pay their own payouts — using real yields and payout schedules from our ETF database.
228 funds pre-filled from our database — yield, price, and payout schedule load automatically.
Custom assumptions
Growth & tax assumptions
Flat-rate withholding keeps this simple — real treatment varies by fund (qualified dividends vs ordinary income vs return of capital).
Year-20 income per month
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Income per year, end of plan
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Total distributions taken
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Ending portfolio value
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Total contributed
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Income growth over plan
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| Year | Income | Added | End value | Cum. income |
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What the DRIP projection shows
Reinvestment is the quiet engine of income investing. Each time the fund pays, the calculator uses that cash to buy more shares at the current price; each new share increases every payout that follows. The chart splits the result into portfolio value and cumulative income received, and the year-by-year table shows the income curve bending upward as the share count grows.
The honest version of the story needs two caveats, so we built them in. First, price growth defaults to 0%: option-income funds can erode their NAV, and assuming appreciation would flatter the result. Second, the projection applies your growth and tax assumptions mechanically and flatly — real funds change their payouts, and real accounts have basis tracking. Use the output to compare strategies, not to promise outcomes.
Toggle DRIP off and the same scenario shows the cash-only path: distributions pile up uninvested, and the compounding gap appears in the final-year income. That gap is the clearest single number in the whole tool — it is what reinvesting is worth to you, in dollars.
Keep going
For the mechanics behind the math, read what DRIP means for income ETFs and our guide to DRIP and compounding. To compare the funds themselves, start at the ETF directory or the monthly dividend list. Prefer to start from the income target instead? The general dividend calculator runs the same engine income-first.
Frequently asked questions
What is a DRIP calculator?
A DRIP (dividend reinvestment plan) calculator projects what happens when every distribution a fund pays is used to buy more shares instead of being taken as cash. Because those new shares pay their own distributions, your income compounds. This version pre-fills real yields and payout schedules from our ETF database and runs the projection period by period — weekly, monthly, or quarterly, matching the fund.
How much difference does reinvesting dividends actually make?
It compounds faster than most people expect. Run any scenario here twice — DRIP on, then off — and compare the income in the final year. With typical yields and a 20-year horizon, reinvesting can leave you with a meaningfully larger income stream and portfolio, entirely from money you would otherwise have spent. The effect grows with the yield and the number of years.
Should I DRIP inside a taxable account?
Reinvesting does not change when tax is due — in a taxable account, distributions are taxable in the year received whether or not you reinvest them, and this calculator applies a flat tax-rate assumption in taxable mode. What DRIP changes is mechanics: automatic buying, fractional shares, and more lots to track for cost basis. Many investors reinvest in tax-advantaged accounts and take cash in taxable ones, then redeploy deliberately.
Does DRIP change my taxes?
No. The DRIP itself is not a tax event. The distributions are. In an IRA or 401(k) nothing is taxed as you receive it; in a taxable account each distribution is reported whether reinvested or paid out, and reinvested amounts add to your cost basis, which lowers your taxable gain when you eventually sell. Option-income funds complicate the picture because much of their payout is often classified as return of capital — confirm specifics with a tax professional.
How is this different from the dividend calculator?
Same engine, different starting point. The main dividend calculator (at /tools/dividend-calculator/) begins with income: how much could a fund pay you. This DRIP calculator starts with reinvestment on by default and frames the output around the compounding gap — what reinvesting adds to your ending value and final-year income versus spending the cash. The numbers agree; the framing differs.
Disclaimer
Numbers on this site are for research and educational use only - not individualized investment advice or a recommendation to buy or sell securities. ETFs involve risk including possible loss of principal. Past yield and performance do not predict future results. Yield to Freedom (YTF) grades are illustrative and subjective; verify all data independently.