Home›Money›Should I reinvest dividends?

Money tools

Should I reinvest my dividends?

A dividend reinvestment plan — a DRIP — puts each dividend straight back into more shares of the same holding, fractions included, instead of paying it out as cash; most brokerages offer it as a setting and usually charge nothing for it. Those extra shares pay dividends of their own, so compare letting that compound against taking the money, and see what the position yields against everything you have put in.

Your position

INPUTS
$
$
%

A year of dividends ÷ the share price.

%
%
yrs
$

Optional — added to both scenarios so the comparison stays fair.

Reinvesting vs. cashing out

RESULT
🧮

Enter an amount invested, a share price, and a holding period.

Save or send these numbersEmail

All four happen in your browser. Your figures are not sent anywhere — the email opens in your own mail app, already filled in.

Related calculators

How will my money grow?

See how your money grows when interest starts earning interest.

What will my portfolio be worth?

Project a portfolio with contributions, fees, taxes, and inflation.

What will I owe in capital gains?

Estimate what you will owe on a sale, and what waiting for long-term rates saves.

The tax bill that arrives whether you took the cash or notA written guide to the rules behind this calculator →
For educational purposes only. Assumes dividends are paid quarterly and grow at a steady rate — companies can and do cut dividends. Share price growth is an assumption, not a forecast. Not investment advice.