Calculator inputs
Example data table
This sample illustrates how yearly dividend reinvestment outputs may look.
| Year | Contribution | Gross Dividends | Ending Shares | Ending Price | Ending Value |
|---|---|---|---|---|---|
| 1 | $15,600.00 | $520.30 | 309.885100 | $53.00 | $16,423.91 |
| 2 | $5,708.00 | $867.44 | 432.519640 | $56.18 | $24,300.72 |
| 3 | $5,879.24 | $1,248.39 | 560.404008 | $59.55 | $33,367.06 |
| 4 | $6,055.62 | $1,669.82 | 694.152870 | $63.12 | $43,813.26 |
| 5 | $6,237.29 | $2,138.45 | 834.514500 | $66.91 | $55,829.28 |
Formula used
Dividend per Share = Starting Share Price × Dividend Yield
Monthly Price Rate = (1 + Annual Price Growth)1/12 − 1
Gross Dividend = Shares × (Annual Dividend per Share ÷ Dividend Frequency)
Net Dividend = Gross Dividend × (1 − Dividend Tax Rate)
New Shares from Dividends = (Net Dividend − Reinvestment Fee) ÷ Current Share Price
Annual Contribution for Year n = Base Contribution × (1 + Contribution Growth)n−1
Ending Value = (Ending Shares × Ending Share Price) + Retained Cash Dividends
How to use this calculator
Step 2: Add the current share price, dividend yield, expected price growth, and expected dividend growth.
Step 4: Press calculate to view projected value, share count, dividend income, and yearly progression.
Frequently asked questions
1) What does this calculator estimate?
It estimates future portfolio value, dividend income, share accumulation, taxes, fees, and total return for an investment that may reinvest dividends over time.
2) How are dividends reinvested here?
Net dividends are calculated after tax, optional reinvestment fees are deducted, and the remaining cash buys additional shares at the current modeled share price.
3) Why does dividend tax matter so much?
Tax reduces the cash available for reinvestment. Smaller reinvested amounts mean fewer added shares, which lowers future dividends and weakens long-term compounding.
4) Why can income rise even if yield stays similar?
Income can grow because you may own more shares over time and the model can also increase the dividend paid per share each year.
5) What is yield on cost?
Yield on cost compares projected annual dividend income with the total amount you personally contributed. It helps show how income efficiency improves over time.
6) Why is annualized return different from total return?
Total return shows overall gain relative to contributions. Annualized return spreads performance across time and accounts for when contributions entered the portfolio.
7) Can I model cash dividends instead of reinvestment?
Yes. Change the dividend setting to retain dividends as cash. That allows income tracking without using payouts to buy new shares.
8) How should I choose growth assumptions?
Use assumptions grounded in company history, sector averages, and your risk tolerance. Testing multiple scenarios is usually more useful than trusting one single forecast.