About the Dividend calculator
This dividend calculator starts with the basics, dividend yield and first-year income, then projects how a dividend investment could grow over many years. You set how fast the dividend and the share price rise, and choose whether dividends are reinvested to buy more shares (a DRIP) or kept as cash.
Results include the value after your chosen number of years, total dividends received, final-year income, shares owned at the end and the yield on your original cost. A chart and a year-by-year table show shares, dividends and value. The working explains each step with your numbers.
How to use it
- Enter your Initial investment and the current Share price.
- Enter the Annual dividend per share.
- Set the Dividend growth per year and Share price growth per year.
- Enter the number of Years to project.
- Tick Reinvest dividends (DRIP) to buy more shares, or untick to keep dividends as cash.
The formula
Dividend yield = annual dividend per share ÷ share price × 100
Starting shares = initial investment ÷ share price
Then, for each year:
Dividends paid = shares × dividend per shareShare price = price × (1 + price growth)With DRIP: shares = shares + dividends ÷ new priceDividend per share = dividend × (1 + dividend growth)
Value = shares × price (plus accumulated cash when dividends are not reinvested)
Yield on cost = final-year dividends ÷ initial investment × 100
How reinvesting dividends compounds
With a DRIP, each dividend buys more shares, and those shares pay their own dividends the next year. Combine that with a dividend that grows every year and income can snowball.
Take $10,000 in a $50 stock paying $2 a share. The yield is 4% and you start with 200 shares earning $400 a year. With 5% dividend growth, 4% price growth and reinvestment for 20 years, you end with about 457 shares, a final-year income near $2,208 and a value of about $50,000.
Without reinvestment, the share count stays at 200. Final-year income is about $1,011 and the value, including the dividends kept as cash, is about $35,100. The gap is the effect of compounding.
Yield, yield on cost and what the model ignores
Dividend yield is today’s dividend divided by today’s price. Yield on cost divides the current dividend by what you originally invested. As dividends grow, yield on cost rises even if the market yield stays the same, which is why long-term dividend investors track it.
A very high yield is not always good news. It can mean the market expects the dividend to be cut. Dividends are never guaranteed, and companies can reduce or suspend them.
The projection pays dividends once a year at a steady growth rate and buys shares at that year’s price. It does not deduct taxes on dividends, which apply in a taxable account, or fund fees. For a total return figure on an actual holding, try the ROI calculator.
Frequently asked questions
How do I calculate dividend yield?
Divide the annual dividend per share by the share price and multiply by 100. A $2 dividend on a $50 share is a 4% yield.
How much dividend income will I get?
Multiply the number of shares by the annual dividend per share. The first-year income line shows this for your investment.
What is a DRIP?
A dividend reinvestment plan automatically uses your dividends to buy more shares, which then earn dividends of their own.
What is yield on cost?
It is the current yearly dividend income divided by your original investment, so it grows as the dividend grows.
Are taxes included?
No. Results are before tax. Dividends in a taxable account are generally taxable in the year they are paid, even when reinvested.
Last updated October 24, 2026. Results are estimates for education and planning — see our disclaimer.