DRIP Share Accumulation Calculator
See how many extra shares a dividend reinvestment plan (DRIP) accumulates over the years, and what the position is worth at the end.
How it works
Each year: dividends = shares · dividend/share · new shares = dividends ÷ price · then grow the dividend and price
A DRIP plows every dividend straight back into more shares at the current price, so the share count compounds instead of the cash sitting idle. Because next year’s dividend is paid on a larger share count — and the per-share dividend itself is rising — the accumulation accelerates over long horizons. The gap between the reinvested and not-reinvested value is the pure contribution of the DRIP.
Worked example
200 shares at $100 paying $3 each is $600 of dividends in year one, buying 6 new shares. With the dividend and price both growing 6% a year for 25 years, the position compounds to well over 300 shares — dozens more than you started with.
Frequently asked questions
Do DRIP shares include fractional shares?
Yes. Most dividend reinvestment plans buy fractional shares, so the entire dividend is put to work rather than leaving a cash remainder. This calculator allows fractional accumulation for the same reason.
Are reinvested dividends still taxable?
In a taxable account, reinvested dividends are taxed in the year they are paid even though you never received cash, and each reinvestment adds to your cost basis. In a tax-advantaged account like an IRA there is no annual tax.
What price are the new shares bought at?
The market price on the dividend payment date. This model buys at the current-year price and then grows the price for the next year, which approximates a plan that reinvests on each pay date.
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Educational estimate, not investment or tax advice.