Free Calculator
Dividend Snowball Calculator
See how far dividend reinvestment can take you. Enter your portfolio details and watch 30 years of compounding play out — including the year your annual dividend income first covers your FIRE target.
How this is calculated ▸
- Contributions — your monthly contribution × 12 is added at the start of each year as a lump sum.
- DRIP reinvestment — dividends are reinvested and compound with the portfolio; nothing is drawn down pre-FIRE.
- Constant return and yield — annual total return and dividend yield are held fixed for all 30 years; no inflation adjustment is applied.
- Nominal AUD, pre-tax — all figures are in nominal Australian dollars before income tax. Franking credits are not modelled.
Final Portfolio
$2,806,366
Final Annual Dividend
$104,911
Years to FIRE
Year 23
| Year | Portfolio Value | Annual Dividend |
|---|---|---|
| 1 | $79k | $3k |
| 2 | $110k | $4k |
| 3 | $144k | $5k |
| 4 | $180k | $7k |
| 5 | $218k | $8k |
| 6 | $259k | $10k |
| 7 | $303k | $11k |
| 8 | $349k | $13k |
| 9 | $400k | $15k |
| 10 | $453k | $17k |
| 11 | $511k | $19k |
| 12 | $572k | $21k |
| 13 | $638k | $24k |
| 14 | $708k | $26k |
| 15 | $783k | $29k |
| 16 | $864k | $32k |
| 17 | $950k | $36k |
| 18 | $1.0M | $39k |
| 19 | $1.1M | $43k |
| 20 | $1.2M | $47k |
| 21 | $1.4M | $51k |
| 22 | $1.5M | $55k |
| 23 | $1.6M | $60k |
| 24 | $1.7M | $65k |
| 25 | $1.9M | $71k |
| 26 | $2.1M | $77k |
| 27 | $2.2M | $83k |
| 28 | $2.4M | $90k |
| 29 | $2.6M | $97k |
| 30 | $2.8M | $105k |
This is a static projection. Track your real portfolio, live yields, franking credits and automated FIRE milestones on Metrifly.
How to use this dividend snowball calculator
A dividend snowball is the compounding effect you get when cash dividends are reinvested into more income-producing assets. The calculator above keeps the model deliberately simple: you enter your starting portfolio, monthly contribution, expected total return, dividend yield and target annual income, then it shows how the income stream grows over 30 years.
Income investor
Test a target yield
Compare a 3%, 4% or 5% yield without assuming the highest yield is the safest. A falling price can make a yield look attractive right before a dividend cut.
FIRE planning
Find the crossover year
Set the annual income you want your portfolio to cover and watch when projected dividends first meet that target.
DRP compounding
Model reinvestment
Use it as a DRP calculator for accumulation years, then track actual reinvested dividend parcels inside Metrifly.
What the projection includes
The model assumes dividends are reinvested, contributions are added annually, and your expected return and dividend yield stay constant. It is useful for comparing scenarios, not predicting a specific future balance. Real portfolios move around: distributions change, companies cut or grow dividends, ETF yields drift, and sequence-of-returns risk can matter even when the long-run average looks reasonable.
What it leaves out
Figures are nominal AUD and pre-tax. The calculator does not model inflation, brokerage, management fees, foreign withholding tax, or franking credits. For Australian investors, those details matter. A franked dividend can carry a refundable tax offset, while a foreign dividend may have withholding tax and a FITO claim. Use this tool to understand the compounding path, then use Metrifly's dividend tracker and tax reports to reconcile what actually happened.
Quick sanity checks before trusting a projection ▸
- Check whether the dividend yield is sustainable, not just high.
- Compare nominal income with your likely future spending after inflation.
- Separate accumulation years, when dividends are reinvested, from retirement years, when you may draw the income.
- Keep tax records for every DRP parcel because reinvested dividends still count as income and create a new cost base.
FAQ
Questions about the calculator
How does the dividend snowball calculator work?
It projects your portfolio over 30 years assuming dividends are reinvested (DRIP) and compounded, then marks the year your annual dividend income first covers your target FIRE income.
What assumptions does it make?
Contributions are added once at the start of each year, returns and dividend yield are constant, and figures are nominal AUD before tax. Inflation, brokerage, fees, withholding tax and franking credits are not modelled. Real-world results vary — track your actual numbers on Metrifly.
Is the dividend income reinvested or drawn?
This is a pre-FIRE accumulation model: dividends are reinvested so the portfolio keeps compounding. The dividend line shows the income you could draw once you reach financial independence.
Does a DRP still count as taxable income?
Yes. A dividend reinvestment plan still pays a dividend for tax purposes, even if the cash is immediately used to buy more units or shares. Keep the income record and the new DRP parcel's cost base.
Why isn't my projection guaranteed?
Markets vary year to year (sequence-of-returns risk), yields change, and inflation erodes purchasing power. The tool is a directional guide, not a forecast.
Want to track your actual dividends, franking credits, and DRP trades? See the Metrifly Dividend Tracker →