Dividend Reinvestment Calculator
Model how reinvesting annual dividends could change share count and portfolio value under user-defined dividend and price growth assumptions.
Enter your values
Understand dividend reinvestment
This is a deterministic scenario that shows compounding mechanics under your assumptions, not a forecast of future dividends or prices.
Formula
Worked example
Starting with 100 shares at $50, a $2 annual dividend, 5% dividend growth and 4% share-price growth for 10 years illustrates how reinvested dividends can accumulate additional shares.
How to interpret the result
This is a deterministic scenario that shows compounding mechanics under your assumptions, not a forecast of future dividends or prices.
Assumptions & limitations
V1 assumes annual year-end reinvestment, fractional shares and constant annual growth assumptions. It excludes taxes, fees, timing differences and dividend cuts.
Practical context
When this calculator is useful
This calculator is useful for exploring how reinvesting cash dividends can increase share ownership over time under a chosen set of assumptions. It helps make the compounding mechanics of reinvestment visible.
How investors commonly use it
Investors test different dividend-growth and share-price-growth assumptions to understand how much of a future portfolio value could come from additional shares purchased with dividends rather than from the original position alone.
What the simulation does not tell you
The model is not a forecast. Real dividends, payment dates, reinvestment prices, taxes, fees and share-price movements vary over time. Results can change substantially when any of those assumptions differ from the simplified scenario.