Stocks & Investing · Introduction
Dividend Snowball Simulator
Enter your shares and see when 20-year DRIP compounding covers your principal.
Updated 2026-10-25 · ThinkVault Tools
What can this tool help you do?
Enter your shares and see when 20-year DRIP compounding covers your principal.
Check the purpose and assumptions, then open the tool. Return to the guide for details.
How does dividend reinvestment (DRIP) compound over time?
How does dividend reinvestment (DRIP) compound over time?
A dividend snowball reinvests cash payouts into additional shares at the prevailing market price, increasing the share count that earns future distributions. Over multi-year horizons, both total shares held and annual dividend income grow according to the reinvestment rate.
Comparing cash payout vs reinvestment scenarios
By setting your initial share count, reinvestment percentage (0% to 100%) and projection horizon (5, 10 or 20 years), you can compare taking dividends in cash against reinvesting them back into the position.
Method
Year-by-year compounding simulation based on starting shares, reinvestment ratio and projection horizon. Optional tax assumption, not inferred from language or ticker. Some nonresidents generally face 30% on US-source dividends; treaty reductions or exemptions may apply. Check your applicable rate. Preset prices are examples, not live quotes. Board lots vary by security; verify the actual lot. 1 means whole shares; no ticker-based guess is made.
Before you begin
Beta · Enter your shares and see when 20-year DRIP compounding covers your principal.