How to use this calculator
Dividend reinvestment uses distributions to increase the investment rather than accumulating them as cash. This model keeps price-only growth and dividend yield separate, allowing a reinvestment scenario to be compared against the same asset growth with dividends retained as non-interest-bearing cash.
The method
Enter the values in the labeled fields, check the units or selected mode, and choose Calculate. The result includes the applicable working and a breakdown or visual when useful. Change an input and calculate again to update the result.
Initial investment ($): 10000 Monthly contribution ($): 100 Assumed annual dividend yield (%): 3 Assumed annual price-only growth (%): 4 Years: 20 Dividend payouts per year: Quarterly
Projected reinvested portfolio: $91,622.02
Price growth and dividend yield are modeled separately.
Scope and limitations
Assumes constant yield on current portfolio value and constant price growth. Contributions are added after each month's payout. Taxes, fees, variable distributions, and interest on cash are excluded. It is not a forecast.
Common questions
Why should I use price-only growth instead of total return?
Total return already includes dividends. This calculator adds dividends separately, so total return would count them twice.
Does the cash comparison include the cash dividends?
Yes. The comparison is the unreinvested portfolio value plus accumulated cash dividends, not just the remaining invested assets.
References & further reading
External references provide background, not an endorsement of this implementation. See our methodology for numerical conventions and limitations.