Calculator
Dividend reinvestment calculator
Reinvesting dividends buys more shares, which pay more dividends. This calculator shows how far apart the two paths drift over time.
Value with dividends reinvested
203,218.93
- Value taking dividends as cash
- 158,741.76
- 109,556.16 holding + 49,185.61 cash
- Annual income at the end (reinvested)
- 7,321.00
Formula
Each year: shares += shares × dividend per share × (1 − tax) ÷ price
How to use it
Enter the starting amount, current dividend yield, expected dividend growth, expected price growth, the horizon and your dividend tax rate.
The reinvested path buys new shares at each year’s price; the cash path keeps the original shares and collects dividends separately.
Assumptions and limits
- Annual compounding, constant growth rates and no trading costs.
- Tax is applied to dividends only; capital gains tax on sale is not modelled.
Common questions
Do accumulating ETFs reinvest automatically?
Yes. Accumulating share classes reinvest income inside the fund, which has the same effect as the reinvested path here, though the tax treatment depends on your country.
For education only, not investment advice. Results depend entirely on the inputs and assumptions above; check important numbers independently.