Investment Calculator
Project wealth accumulation with dividends, taxes, and compound growth
Portfolio Details
Input Guide
Annual Return: Expected
stock price growth (e.g. 7-8% for
S&P 500).
Dividend Yield:
Cash payouts (e.g. 1.5% for S&P 500).
Growth Breakdown
Results
Final Portfolio Value
How to Use Our Investment Calculator
This advanced calculator helps you model realistic stock market returns by separating price appreciation (growth) from dividend income. By enabling DRIP (Dividend Reinvestment Plan), you can see the powerful compounding effect of reinvesting your cash payouts to buy more shares.
Frequently Asked Questions
What is DRIP (Dividend Reinvestment)?
DRIP stands for Dividend Reinvestment Plan. Instead of receiving dividends as cash, they are automatically used to purchase more shares of the stock or fund. This accelerates compounding because your new shares will also earn dividends in the future.
How do taxes affect my returns?
In a taxable brokerage account, you typically owe capital gains tax on the profit when you sell. Long-term capital gains (held >1 year) are taxed at 0%, 15%, or 20% depending on income. Dividends are also taxed in the year they are received, even if reinvested.
Real vs. Nominal Returns?
Nominal Return is the raw number you see in your account. Real Return adjusts for inflation (purchasing power). If you gain 7% but inflation is 3%, your "Real" return is approximately 4%.