# Dividend Calculator (with Reinvestment)

URL: https://speedycalculator.com/calculators/finance/dividend/
Last updated: 2026-10-25

> The dividend calculator works out a stock's dividend yield and projects an investment with dividends reinvested (DRIP) over a number of years – final balance, total growth and the dividend income earned – with optional share price growth.

## Inputs

- Share price
- Annual dividend per share
- Money invested
- Number of years
- Dividend frequency (compounding)
- Expected share price growth per year (%)
- Tax on dividends (%)

## Results

- Dividend yield
- Final balance (dividends reinvested)
- Overall growth
- Profit from dividends
- Dividend income in the first year

## Formula

```
Dividend yield = annual dividend per share ÷ share price
With reinvestment: balance = investment × (1 + yield ÷ n)^(n × years) × (1 + price growth)^years
```

## Explanation

Reinvesting dividends is one of the biggest drivers of long-term stock returns: over long periods, reinvested dividends have accounted for a large part of the S&P 500's total return.

### How to use the Dividend Calculator

- **Share price**
- **Annual dividend per share**
- **Money invested**
- **Number of years**
- **Dividend frequency (compounding)**
- **Expected share price growth per year**
- **Tax on dividends**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the share price, the annual dividend per share, the amount invested, the number of years, how often dividends are paid and the expected yearly price growth.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterShare priceAmount in your currencyAnnual dividend per shareAmount in your currencyMoney investedAmount in your currencyNumber of yearsA numberDividend frequency (compounding)Choose one: Annually, Semi-annually, Quarterly, MonthlyExpected share price growth per yearIn %Tax on dividendsIn %

### What each result means

- **Dividend yield** = [Annual dividend per share]÷[Share price]×100
- **Final balance (dividends reinvested)** = [Money invested]×(1 + [Dividend yield]÷100×(1 - [Tax on dividends]÷100)÷[Dividend frequency (compounding)])^([Dividend frequency (compounding)]×[Number of years])×(1 + [Expected share price growth per year]÷100)^[Number of years]
- **Overall growth** = ([Final balance (dividends reinvested)]÷[Money invested] - 1)×100
- **Profit from dividends** = [Money invested]×(1 + [Dividend yield]÷100×(1 - [Tax on dividends]÷100)÷[Dividend frequency (compounding)])^([Dividend frequency (compounding)]×[Number of years])×(1 + [Expected share price growth per year]÷100)^[Number of years] - [Money invested]×(1 + [Expected share price growth per year]÷100)^[Number of years]
- **Dividend income in the first year** = [Money invested]×[Dividend yield]÷100×(1 - [Tax on dividends]÷100)

### Example values

How the main result changes when **Share price** changes and everything else stays at the example values above:

Share priceFinal balance (dividends reinvested)253,959.2637.52,515.85502,001.662.51,743.89751,590.371001,416.91

## Worked example

Inputs — Share price: $50; Annual dividend per share: $3.5; Money invested: $1,000; Number of years: 10; Dividend frequency (compounding): Quarterly; Expected share price growth per year: 0 %; Tax on dividends: 0 %.

Results — Dividend yield = 7 %; **Final balance (dividends reinvested) = $2,001.60**; Overall growth = 100.16 %; Profit from dividends = $1,001.60; Dividend income in the first year = $70.00.

## FAQ

**How are dividends calculated?**
Dividend per share × number of shares.

**What is a DRIP?**
A dividend reinvestment plan that uses dividends to buy more shares automatically.

**Are dividends guaranteed?**
No – companies can cut or suspend dividends.

**What formula does the Dividend Calculator use?**
Dividend yield = annual dividend per share ÷ share price.


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)