Dividend Reinvestment (DRIP) Calculator

The calculator steps through every month. The share price grows smoothly at your yearly rate. The dividend per share is fixed for each year and grows once a year. In each payout month (for example every third month if the company pays quarterly) it pays dividends on the shares you hold, takes off the withholding tax, and uses what is left to buy more shares at that month's price. Extra monthly investments, if any, are bought at the start of each month.

The second line of every chart shows the same plan with the dividends kept as cash that earns nothing. The gap between the two is the value of reinvesting, nothing else. Everything starts from your pick of stock, so the starting dividend and price come from live data and stay editable.

Invest Rs 500,000 in a share at Rs 400 that pays Rs 25 a year (a 6.25% yield), quarterly, for 15 years. Dividend growth and price growth are the two assumptions that move the answer most:

The flat case isolates the effect of reinvesting alone: with no price or dividend growth, every dividend buys more shares at the same price and the holding still grows from 1,250 to about 2,759 shares. The tax rate matters too: moving from filer to non-filer cuts the final value by Rs 441,256.

• No automatic plan. Listed companies pay dividends in cash to the bank account linked to your CDC account. To reinvest you place a buy order yourself. Some mutual funds can reinvest payouts automatically.
• Whole shares only. A Rs 3,000 dividend cannot buy a Rs 4,000 share, so the cash waits. The whole shares option under More options carries leftovers forward the way your account would.
• Costs. Each purchase pays brokerage, sales tax on brokerage and exchange charges, about 0.18% in total at a typical broker (see brokerage calculator). With whole shares and these costs, the example ends at Rs 4,022,142 instead of Rs 4,036,808. Reinvesting a few payouts together keeps the percentage down.
• Tax first. You can only reinvest what is left after the final tax, so a lower-tax payer type (see the dividend tax calculator) compounds faster.

• Starting yield. It comes from live data: the latest annual dividend over today's price. The dividend yield calculator shows the payout ratio and cover behind it.
• Dividend growth. A dividend can only keep growing if earnings do. Look at the payout history and the earnings trend on the company page, and treat a company paying out nearly all its profit as a weak candidate for growth. Zero is the cautious setting.
• Price growth. The calculator applies one steady rate. Real prices move in cycles, and a long flat or falling stretch makes reinvesting buy more shares at lower prices, while a long rise does the opposite.
• The alternative. The base case compounds at about 14.94% a year, before any capital gains tax on selling. A 12-month T-bill gave 12.89% at the October 28, 2026 auction, about 10.96% after a filer's tax, and is fixed if held to maturity, while the stock's path is not. Set your assumptions with that comparison in mind, and see the T-bill calculator.

A starting yield and a growing dividend produce a powerful chart, and the chart is only as honest as its inputs. Dividends are cut when profits fall or a company retains cash for growth. Share prices can go sideways or down for years while dividends keep coming, which makes reinvestment buy more shares cheaply, or can fall because the business is struggling. Use a flat dividend as the baseline, compare with a cautious price growth near long-run inflation (see the inflation calculator), and test the starting yield against the stock's payout history with the dividend yield calculator. To estimate the income itself, use the dividend income calculator. For regular contributions without the dividend element, try the SIP calculator. The final value is also before capital gains tax: a profit made when you sell shares is taxed under section 37A, so use the capital gains tax calculator to see what you would keep.