What is DRIP investing?

DRIP (Dividend Reinvestment Plan) automatically uses dividend payments to purchase additional shares instead of taking cash. Over time, those extra shares generate their own dividends, creating a compounding effect that significantly outperforms taking dividends as cash over 15–30+ year horizons.

How much more does DRIP produce vs no DRIP?

It depends on the yield, growth rate, and time horizon. For a typical dividend-growth ETF like SCHD at 3.5% yield and 7% growth over 20 years, DRIP typically produces 40–60% more terminal value than taking dividends as cash. The longer the time horizon, the more dramatic the difference.

Does DRIP work better in a Roth IRA?

Yes. In a taxable account, you pay taxes on dividends each year before reinvesting — reducing the compounding base. In a Roth IRA, dividends reinvest at full value with no annual drag. For non-qualified payers like JEPI or MSTY, this difference is especially large since ordinary income rates apply in taxable accounts.

DRIP Calculator

Model dividend reinvestment (DRIP) over 1–40 years. See DRIP vs no-DRIP side by side, tax-aware projections for Roth IRA vs taxable accounts, and YieldMax NAV erosion modeling.

Ticker-Specific Calculators

SCHD

Schwab US Dividend Equity ETF

VOO

Vanguard S&P 500 ETF

MSTY

YieldMax MSTR Option Income

JEPQ

JPMorgan Nasdaq Premium Income

QQQI

NEOS Nasdaq-100 High Income

AAPL

Apple dividend calculator

JEPI

JPMorgan Equity Premium Income

VIG

Vanguard Dividend Appreciation

Calculator Modes

Yield Calculator

Quick dividend yield

Monthly Income

Monthly dividend income planner

Portfolio Mode

Multi-position income calendar

Why use our online DRIP Calculator?

DRIP (Dividend Reinvestment Plan) turns cash payouts into more shares, compounding your income over time. This calculator shows the exact difference — with and without reinvestment — across any ticker in our database.

How to use DRIP Calculator

1
Select a ticker
Search SCHD, VOO, MSTY, JEPI, or any of 100+ tickers. Dividend growth rate auto-fills from historical data.
2
Set investment amount
Enter a dollar amount or share count. Add a monthly contribution for DCA modeling.
3
Choose time horizon
Drag the slider from 1 to 40 years. The chart updates in real time.
4
Toggle DRIP on/off
See both paths side by side — the chart shows exactly how reinvestment compounds.
5
Select account type
Roth IRA eliminates tax drag. Taxable accounts show annual tax cost for qualified and non-qualified dividends.

The compounding math behind DRIP

Each dividend payment buys a fractional share. That share earns dividends. Those dividends buy more shares. The compounding effect is slow at first but accelerates dramatically. At year 10, the difference is modest. At year 20, it's substantial. At year 30, DRIP portfolios can be 2–3× larger than identical no-DRIP portfolios with the same starting capital.

Frequently Asked Questions

What is DRIP investing?: DRIP (Dividend Reinvestment Plan) automatically uses dividend payments to purchase additional shares instead of taking cash. Over time, those extra shares generate their own dividends, creating a compounding effect that significantly outperforms taking dividends as cash over 15–30+ year horizons.
How much more does DRIP produce vs no DRIP?: It depends on the yield, growth rate, and time horizon. For a typical dividend-growth ETF like SCHD at 3.5% yield and 7% growth over 20 years, DRIP typically produces 40–60% more terminal value than taking dividends as cash. The longer the time horizon, the more dramatic the difference.
Does DRIP work better in a Roth IRA?: Yes. In a taxable account, you pay taxes on dividends each year before reinvesting — reducing the compounding base. In a Roth IRA, dividends reinvest at full value with no annual drag. For non-qualified payers like JEPI or MSTY, this difference is especially large since ordinary income rates apply in taxable accounts.

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