How to use it
- Enter Starting amount.
- Enter Annual rate %.
- Enter Years.
- Enter Compounds / year.
- Enter Monthly contribution.
The formula
Reinvested dividends compound over time.
Worked example
Reinvesting can meaningfully outpace taking dividends as cash.
Frequently asked questions
Why reinvest?
It compounds your share count and income.
Any downside?
Less current income and possible taxes on reinvested amounts.
Tips
- Time in the market beats timing the market.
- Reinvest returns to let compounding work.
- Keep fees low — they compound against you.
Key terms
- Compounding
- Earning returns on past returns.
- CAGR
- The smoothed annual growth rate.
- Yield
- Income as a percent of price.