Dividend Reinvestment (DRIP) Calculator

Yes — in India, dividends are taxable in your hands at your slab rate in the year received, even if immediately reinvested into more shares. There is no tax-free reinvestment wrapper for direct equity the way there is for instruments like PPF or ELSS.

For long-term compounding growth, reinvesting generally builds a larger portfolio than taking cash — but if you need the income now (e.g. in retirement), taking dividends as cash may better match your actual goals.

This calculator assumes steady dividend growth — a real dividend cut would reduce both your income and the reinvestment amount, and often signals broader problems with the company worth investigating before assuming growth will resume.