Aurora Finance
Calculator

Dividend reinvestment calculator

A Dividend Reinvestment Plan (DRIP) buys more shares with every dividend paid. Over decades, this compounding of share count is a major driver of total return.

Updated July 2026
$
%
%
Ending share count
202
Ending value (with DRIP)
$34,242
Ending value (no DRIP)
$16,932
DRIP advantage: $17,311

How it works

Approx: FV = Shares × Price × (1 + priceGrowth + yield)^years (reinvested)
  • Enter starting shares, current price, dividend yield, expected price growth, and years.
  • The calculator compounds dividends into new shares each year at the projected price.

Worked examples

  • 100 shares at $50, 3% yield, 5% price growth, 25 years → roughly 275 shares worth ~$46,000.
  • Same setup without reinvestment ends with 100 shares worth ~$17,000 plus cash dividends.

Frequently asked questions

Are DRIPs taxable?

Yes — reinvested dividends are still taxable in the year received in most jurisdictions. Tax-advantaged accounts sidestep this.

Do fractional shares matter?

Yes. DRIPs typically buy fractional shares so every cent of the dividend is reinvested.

Related

Dividend yield calculator
Underlying yield math.
Compound interest calculator
The engine behind DRIPs.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.