ETF DRIP Calculator

Calculate how dividend reinvestment grows your ETF portfolio over time

Initial Investment ($)

Monthly Contribution ($)

Dividend Yield (%)

Dividend Frequency

Annual Growth Rate (%)

Time Horizon (Years)

Projected Results

Total Invested: $0

Dividends Earned: $0

Growth from Price Appreciation: $0

Final Portfolio Value: $0

Total Return: 0%

Year 0

Year 2

Year 4

Year 6

Year 8

Year 10

A Dividend Reinvestment Plan (DRIP) Calculator shows how reinvesting dividends accelerates ETF growth. This tool helps investors visualise:

✅ Compound growth from reinvested dividends
✅ Impact of regular contributions
✅ Price appreciation effects
✅ Total return projections

Enter Initial Investment
- Example: “$10,000 in VOO ETF”
Add Monthly Contributions
- Example: “$500/month” to dollar-cost average
Set Dividend Yield
- Most ETFs yield 1-4% (e.g., 1.5% for VOO)
Select Dividend Frequency
- Quarterly (most common), monthly, or annually
Input Growth Rate
- Historical S&P 500 average: ~7% annually
Choose Time Horizon
- Long-term results improve with 10+ years
View Projections
- See total dividends earned, final portfolio value, and growth chart

Reinvested dividends buy more shares, which generate more dividends, creating a snowball effect.

Example:

Automatic reinvestment buys shares at various prices, lowering average cost.

“Set and forget” strategy is ideal for retirement accounts (Roth IRA, 401k).

Metric	Why It Matters
Total Invested	Annualised ROI including dividends
Tracks the capital you contributed	Shows passive income generated
Price Appreciation	Capital gains from ETF growth
Final Portfolio Value	Projected worth with DRIP
Total Return	Annualized ROI including dividends

Does DRIP work better for ETFs or stocks?
- ETFs are ideal because they’re diversified and have lower volatility than individual stocks.
How often should I check my DRIP progress?
- Annually. Frequent monitoring leads to emotional decisions.
Can I automate DRIP with any broker?
- Yes! Most platforms (Fidelity, Vanguard) offer automatic reinvestment.
What’s the best dividend frequency for compounding?
- Monthly > Quarterly > Annually (but the difference is minimal long-term).