Dividend Reinvestment Projector
Automatically reinvesting dividends is one of the most powerful compounding forces in investing. See exactly how much it adds over time, and what taxes cost you.
$
$
%
%
%
yrs
%
With Reinvestment
$1,022,024
final balance (nominal)
Without Reinvestment
$529,292
price appreciation only
Reinvestment Benefit
$492,731
extra wealth from DRIP
Real Value (Today's $)
$483,222
after 3% inflation
Total Dividends Earned
$375,157
Total Tax on Dividends
$56,274
Qualified Dividends (15%)
Year-by-Year Growth
| Year | With DRIP | Without DRIP | Annual Dividends | Tax on Divs | Real Value |
|---|---|---|---|---|---|
| 1 | $58,182 | $57,332 | $1,000 | $150 | $56,465 |
| 2 | $67,145 | $65,195 | $1,222 | $183 | $63,239 |
| 3 | $76,975 | $73,625 | $1,481 | $222 | $70,358 |
| 4 | $87,772 | $82,665 | $1,782 | $267 | $77,858 |
| 5 | $99,648 | $92,359 | $2,134 | $320 | $85,784 |
| 10 | $180,359 | $152,409 | $4,988 | $748 | $133,663 |
| 15 | $317,199 | $237,536 | $11,224 | $1,684 | $202,369 |
| 20 | $561,042 | $358,215 | $25,256 | $3,788 | $308,137 |
| 25 | $1,022,024 | $529,292 | $58,275 | $8,741 | $483,222 |
⚠️ In taxable accounts, dividends are taxed in the year they're paid, even if you reinvest them. This creates a tax drag that reduces the compounding benefit of DRIP. A Roth IRA or 401k eliminates this drag entirely.