Dividend Reinvestment Calculator

Why reinvestment changes the curve

Reinvestment compounds on top of both market growth and future dividend payments. The later years usually create the steepest income acceleration.

Total contributed

SGD 39,000

Net dividends reinvested

SGD 24,335

Total return

123.74%

Year	Start	Dividends added	End
1	SGD 15,000	SGD 629	SGD 18,404
2	SGD 18,404	SGD 784	SGD 22,121
3	SGD 22,121	SGD 960	SGD 26,185
4	SGD 26,185	SGD 1,161	SGD 30,636
5	SGD 30,636	SGD 1,389	SGD 35,522
6	SGD 35,522	SGD 1,648	SGD 40,893
7	SGD 40,893	SGD 1,943	SGD 46,809
8	SGD 46,809	SGD 2,280	SGD 53,337
9	SGD 53,337	SGD 2,663	SGD 60,552
10	SGD 60,552	SGD 3,102	SGD 68,542
11	SGD 68,542	SGD 3,602	SGD 77,407
12	SGD 77,407	SGD 4,175	SGD 87,260

How the dividend reinvestment calculator works

The calculator models a contribution-and-reinvestment path rather than predicting a specific stock. It is most useful for testing how sensitive future income is to starting yield, dividend growth, new savings, and time.

Core calculation

ending income ≈ accumulated shares or capital × modeled dividend rate

Inputs that matter

Starting capital determines the initial base available to earn dividends.
Dividend yield sets the initial income rate used by the model.
Dividend growth changes the modeled distribution rate over time.
Annual contributions add new capital independently of reinvested dividends.
Time horizon determines how many compounding periods the assumptions receive.

How to interpret the result

Compare scenarios instead of treating one output as a forecast.
A higher ending income can come from more contributions, stronger dividend growth, a higher starting yield, or some combination of all three.
Yield on cost describes income relative to contributed capital; it is not the same as current market yield.

Worked example

If two scenarios use the same starting capital and contributions but one assumes faster dividend growth, the gap between them tends to widen over longer horizons because later reinvestments occur on top of a larger accumulated base.

Important limitations

Real dividends can be cut, suspended, or changed irregularly.
Prices do not move smoothly, so real reinvestment purchases occur at varying valuations.
Taxes, withholding, fees, bid-ask spreads, and account rules can reduce the amount reinvested.
The result is an educational model, not a security-specific return forecast.

Related research

DRIP definition · Dividend growth rate · Monthly income target calculator · Historical DRIP case studies