Dividend Calculator — Yield, Income & DRIP Reinvestment

Dividend calculator: yield, income and the power of DRIP

This dividend calculator answers three questions about a dividend-paying stock: what is the yield, how much income will my shares pay, and what happens if I reinvest every dividend instead of spending it? Enter the share price and the dividend per share (or the yield), your number of shares or the amount invested, and how often the company pays. You get the yield, the income per year, per month and per payout, after tax if you enter a rate.

Then set a dividend growth rate, a share price growth rate and a number of years. The calculator simulates every payout — reinvested through a dividend reinvestment plan (DRIP) or taken as cash — and shows the shares you end with, the income in the final year, your yield on cost and the difference reinvesting makes, with a chart and a year-by-year table you can download.

How to use the Dividend Yield & Income Calculator (with DRIP)

1. Pick the currency and enter the share price.
2. Enter the total dividend per share for a year, or switch to Dividend yield and enter the yield.
3. Choose how often it is paid, then enter the shares you own or the amount you invested.
4. Optionally enter a tax rate on dividends, the dividend and price growth you expect, the years, and a yearly top-up.
5. Tick or untick Reinvest dividends (DRIP) and compare the two lines on the chart.
6. Download the year-by-year table as CSV or copy the summary.

Dividend Yield & Income Calculator (with DRIP) features

Dividend yield and income formula

Dividend yield = annual dividend per share ÷ share price × 100. A share at ₹2,500 paying ₹80 a year yields 3.2%. Annual income = shares × dividend per share × (1 − tax): 400 shares bring ₹32,000 a year, paid as ₹16,000 twice a year. Yields change with the price, so use the current price for the yield and your purchase price for the yield on cost.

Reinvesting: with no growth at all, a 5% yield reinvested once a year turns 100 shares into 100 × 1.05¹⁰ = 162.89 shares after ten years; at ₹100 a share that is ₹16,289, against ₹15,000 if the ₹500 a year is kept as cash. Add dividend growth and price growth and the gap widens — the chart shows exactly how much for your figures. For a lump sum at a fixed rate, compare the compound interest calculator; to measure a past return, use the CAGR calculator.

Dividends in India and the US

• India: dividends are added to your income and taxed at your slab rate. The company deducts 10% TDS when it pays you more than ₹10,000 in a tax year (section 393 of the Income-tax Act, 2025, which replaced section 194; the threshold rose from ₹5,000 on 1 April 2025). Indian companies usually pay an interim and a final dividend; formal DRIP schemes are rare, so “reinvesting” means buying more shares yourself with the money.
• US: qualified dividends are taxed at 0%, 15% or 20% depending on income; ordinary dividends at your income-tax rate. Many brokers offer automatic DRIP with fractional shares. Non-residents usually suffer withholding tax on US dividends — enter that rate.
• UK: a dividend allowance is tax-free and the rest is taxed at the dividend rates for your band; dividends inside an ISA are tax-free.

Limits of a dividend projection

Dividends are decided by each company’s board and can be cut or suspended; a very high yield is often a sign the market expects a cut. Prices do not grow smoothly, reinvestment purchases carry charges, and taxes change. Treat the result as a scenario, and check a stock’s valuation with the DCF calculator rather than buying on yield alone.