The method
How it is worked out
Each year: dividend = shares × price × yield; new shares = dividend ÷ price
- shares
- Shares held
- price
- Share price
- yield
- Annual dividend yield
Dividend Reinvestment Calculator
Model how reinvesting dividends can increase share count, portfolio value and future dividend income over time. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Dividend changesCompanies can change or cancel dividends.
- Price pathA constant yearly price growth rate is only a model.
- Tax and feesTaxes, dealing fees and withholding tax are excluded.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Dividend Reinvestment Calculator
Model what happens when dividends purchase additional shares instead of being taken as cash. Use it to compare a dividend-investing scenario across several years and to see how an increasing share count can affect later income.
How it works and an example to tryShow less
How to use the result
For each period, the model derives dividend cash from shares held, assumed share price and yield, then uses that cash to acquire further shares. New shares can receive later dividends, creating compounding in the projection. It uses the assumptions entered rather than forecasting company policy or future market prices; dealing costs and taxes can reduce actual reinvestment.
Example to try
Try a ten-year illustration with a 5% yield and compare reinvesting every payout with simply observing the original holding. Pay attention to the assumed share price and dividend: a cut in the payout or a changing price can make a real outcome differ substantially.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Long-term investors deciding whether to take dividends as cash or buy more shares, and anyone illustrating how a growing share count lifts future income.
Mistakes worth avoiding
- Assuming the dividend and share price stay flat for a decade; neither will.
- Ignoring dealing costs on small reinvestments, which can erase the benefit.
- Forgetting tax is often due on a dividend even when it is reinvested.
Questions
What does the Dividend Reinvestment Calculator do?
Model how reinvesting dividends can increase share count, portfolio value and future dividend income over time.
How should I use the result?
For each period, the model derives dividend cash from shares held, assumed share price and yield, then uses that cash to acquire further shares. New shares can receive later dividends, creating compounding in the projection. It uses the assumptions entered rather than forecasting company policy or future market prices; dealing costs and taxes can reduce actual reinvestment.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a dividend reinvestment calculator?
Assuming the dividend and share price stay flat for a decade; neither will. Ignoring dealing costs on small reinvestments, which can erase the benefit. Forgetting tax is often due on a dividend even when it is reinvested.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.