Free investing tool
Dividend & Compound Growth Calculator
See how a dividend portfolio could grow with regular contributions and reinvested dividends. Change any number and the results update instantly.
- Portfolio value
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- Total contributed
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- Dividends earned
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- Yearly dividend income at the end
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Your contributions Growth and dividends
How the calculator works
The calculator runs month by month. Each month, the share price grows by your yearly growth rate (converted to a monthly rate), the portfolio pays one twelfth of its yearly dividend yield, and your monthly contribution is added. With dividend reinvestment (DRIP) switched on, dividends buy more shares and compound. With it off, dividends are kept as cash and do not grow.
“Yearly dividend income at the end” is what the final portfolio would pay over the next twelve months at the same yield.
What the numbers leave out
- Taxes. Dividends are usually taxed in the year they are paid, even when reinvested, unless they sit in a tax-advantaged account.
- Fees. Fund expense ratios and trading costs reduce returns.
- Inflation. Results are in future dollars, not today’s purchasing power.
- Volatility. Real markets do not grow in a straight line, and companies can cut or suspend dividends.
Choosing inputs
The S&P 500’s dividend yield has been under 2% in recent years, while dividend-focused funds often yield more. Share price growth and yield are separate inputs here, so avoid counting dividends twice: if you use a total-return figure for growth, set the yield to 0. Past returns do not guarantee future results, so try a lower growth rate to see a more cautious outcome.