Dividend Reinvestment Calculator

Dividend Calculator

Our dividend calculator allows you to calculate your portfolio’s future value based on a few assumptions and the compound interest formula. Our calculator takes into account:

  • Initial portfolio value
  • Monthly contributions
  • Average annual rate of return
  • 5 year dividend growth rate
  • Number of years in market

And performs compound interest calculations on all that data. We then display an easy to read chart that gives you all the important information you need to see how your portfolio will progress over the years.

Compound interest is a phenomenon that dictates how your portfolio will grow in the future if you reinvest your current profits. This aspect of investing is amplified when dealing with dividend stocks since you are actually paid cash and can reinvest that cash automatically through programs like DRIP.

The awesome thing about compound interest is that if you continue to reinvest your profits year after year - your annual dividend income will actually increase exponentially. This means that your income will grow faster in the upcoming years compared to the previous years or your income will accelerate.

This - along with a dividend stock's annual average growth rate can cause your portfolio to appreciate quite rapidly when the effects of a dividend growth rate and reinvestment are compounded.