See what your dividends could pay. This free dividend calculator estimates your annual and monthly dividend income, total dividends and growth over time — with or without reinvestment.
Estimate only. Dividends are not guaranteed and can be cut. Figures are before tax.
How the Dividend Calculator Works
Dividend income compounds when you reinvest it and grows on its own when the company raises its payout. The dividend calculator projects your annual dividend income and total dividends over time, with or without reinvestment (DRIP).
Formula: Annual Dividend (in a given year) = Balance × Yield for that year, where Yield grows each year by the dividend growth rate: Yield in Year N = Initial Yield × (1 + Dividend Growth Rate)^N. When dividends are reinvested, each year's dividend is added back to the balance before the next year's dividend is calculated, so the balance compounds; when they're not reinvested, the balance stays at the original investment amount. Total Dividends is the sum of every year's dividend, and Yield on Cost is the final year's dividend divided by the original investment.
- Investment amount — the amount of money currently invested in the dividend-paying asset
- Dividend yield — the annual dividend as a percentage of the investment amount, in year one
- Years held — how many years you plan to hold the investment
- Dividend growth per year (optional) — the rate at which the dividend payout itself is expected to increase each year
- Reinvest dividends (DRIP) — whether each dividend payment is added back to the balance so future dividends are calculated on a larger amount
Example Scenarios
| Investment | Yield | Years Held | Reinvest? | Total Dividends |
|---|---|---|---|---|
| $10,000 | 5% | 3 | Yes | $1,576 |
| $20,000 | 4% | 2 | No | $1,600 |
| $5,000 | 6% | 1 | Yes | $300 |
| $15,000 | 3% | 5 | No | $2,250 |
| $8,000 | 5% | 4 | Yes | $1,724 |
Dividend Calculator FAQ
What does "reinvest dividends" (DRIP) actually change in the calculation?
Turning DRIP on adds each dividend payment back to your balance before the next year's dividend is calculated, so later dividends are paid on a larger amount and your balance compounds. With DRIP off, your balance stays fixed at the original investment and each year's dividend is paid out rather than reinvested.How is dividend growth rate different from stock price growth?
Dividend growth rate measures how much the actual cash payout per share is expected to increase each year, based on the company raising its dividend. It's separate from the stock's price appreciation, which this calculator doesn't estimate.What's the difference between dividend yield and yield on cost?
Dividend yield is the current year's dividend as a percentage of the investment amount today. Yield on cost is the dividend in a future year measured against your original investment amount, so it rises over time if the dividend grows or is reinvested.Are the dividend figures shown before or after tax?
The figures are before tax. Dividend income is often taxed, and rates vary by country, account type and income level, so you should subtract your applicable tax rate separately to estimate what you'll actually keep.Why might my actual dividend income differ from this estimate?
This calculator assumes a constant yield and a steady growth rate you enter. Actual dividends depend on company earnings, board decisions, share price changes and market conditions, none of which follow a fixed schedule.Does this calculator account for dividend cuts or suspensions?
No. It assumes the dividend continues and grows at the rate you specify. Dividends are not guaranteed and companies can reduce or suspend them, so treat the projection as an estimate under stable conditions, not a guarantee.Related Calculators
To see how dividend reinvestment compares with other forms of compounding, try the compound interest calculator or the broader investment calculator. If you'd rather measure an investment's overall annual growth rate rather than its dividend stream, the CAGR calculator is a useful companion.