DRIP investing automatically reinvests dividends to buy more shares, compounding your returns over decades.
A $10,000 investment at 4% yield with 7% annual growth becomes $76,000+ in 20 years with DRIP.
Use this calculator before making any financial commitment that depends on this type of calculation. Running the numbers in advance lets you evaluate options without the pressure of a live negotiation or decision deadline.
Many financial calculation errors stem from omitting ancillary costs: fees, taxes, insurance, or maintenance. The headline figure (interest rate, monthly payment) is rarely the complete cost of a financial product.
An employee receives a counter-offer from another employer: a $4,000 salary increase but no pension contribution versus the current role's lower salary with 8% employer pension. Running both through the finance calculator shows the true net financial value of each offer.
Dividend Reinvestment Plan — automatically using dividend payouts to purchase more shares instead of taking cash.