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Dividend
Calculator

Instantly estimate your dividend income and portfolio growth — with or without reinvestment (DRIP).

Monthly & Annual income DRIP compounding Growth chart
Inputs
Reinvest Dividends (DRIP)
₹
Starting capital
%
Annual yield (0–20%)
How often dividends are paid
10 years
3% / year
Annual dividend increase

What is a Dividend?

A dividend is a portion of a company's earnings paid out to shareholders, usually in cash. Companies that consistently pay dividends are often mature, profitable businesses — think utilities, banks, and consumer staples. Dividends provide a steady income stream without needing to sell your shares.

How Dividend Yield Works

Dividend yield expresses annual dividends as a percentage of the current share price. If a stock pays ₹40 per year and trades at ₹1,000, its yield is 4%. Higher yield isn't always better — it can signal a falling stock price. Always check whether the dividend is sustainable.

Dividend Yield = (Annual Dividend per Share / Share Price) × 100

What is DRIP (Dividend Reinvestment)?

DRIP stands for Dividend Reinvestment Plan. Instead of taking dividends as cash, you reinvest them to buy more shares. Over time, this creates compounding — your dividends earn dividends. Even a modest yield can grow dramatically when reinvested for 10–20 years. This calculator shows you exactly how powerful DRIP can be.

Example Calculation

Suppose you invest ₹5,00,000 at a 5% dividend yield with 4% annual growth, holding for 15 years with DRIP enabled. You'd earn roughly ₹25,000 in Year 1, but by Year 15 your annual dividend income could exceed ₹70,000 — and your portfolio might be worth ₹10,00,000+. Use the calculator above to run your own numbers.

Frequently Asked Questions

Is dividend investing good for beginners?
Yes. Dividend stocks tend to be from stable, established companies. The regular income helps beginners stay invested and understand compounding early.
What's a good dividend yield to target?
Generally 3–6% is considered healthy. Yields above 8% may be unsustainable — always verify the company's payout ratio and earnings.
How is dividend income taxed in India?
In India, dividends are added to your total income and taxed at your applicable income tax slab rate. TDS of 10% applies if dividend income exceeds ₹5,000 per year from a single company.
Does this calculator account for taxes or inflation?
No — this MVP calculates pre-tax, nominal returns. Tax and inflation adjustments are planned for a future version.
What is "Yield on Cost"?
Yield on Cost (YoC) is your dividend income in the final year divided by your original investment. It shows how much your initial capital is effectively earning after dividend growth and reinvestment.