Dividend Reinvestment Calculator
Reinvesting dividends is not free — withholding tax and FX conversion eat into every distribution. This calculator shows the real compounding power of DRIP after those costs.
Separate from dividend yield. For a total-return index fund, split the total return across both fields.
US ETFs: typically 15% (UK/IE treaty). Varies by country and treaty.
Only applies if dividends are paid in a foreign currency (e.g. USD dividends into a GBP account).
With DRIP
£42,774
All net dividends reinvested
Full compoundingWithout DRIP
£34,923
Portfolio £26,533 + cash £8,390
DRIP compounding advantage after 20 years
£7,851 more
Gross dividends
£13,045
Withheld (tax)
£1,957
FX drag
£55
Year-by-year comparison
| Yr | DRIP portfolio | No-DRIP + cash | DRIP advantage |
|---|---|---|---|
| 1 | £10,754 | £10,754 | +£0 |
| 5 | £14,381 | £14,165 | +£216 |
| 10 | £20,682 | £19,480 | +£1,202 |
| 15 | £29,743 | £26,264 | +£3,479 |
| 20 | £42,774 | £34,923 | +£7,851 |
Illustrative only. Assumes constant annual yield, price appreciation, and withholding rate. Does not model accumulation share classes, ISA wrappers, or reinvestment timing effects.