REIT Calculator
Project REIT dividend income and total return with DRIP reinvestment and dividend growth.
Annual Dividend (Year 1)
$1,000.00
Monthly Income (Year 1)
$83.33
Projected Income (Year 10)
$1,838.46
Investment Summary
| Shares Purchased | 500.00 |
| Year 1 Annual Dividend | $1,000.00 |
| Year 1 Monthly Income | $83.33 |
| Yield on Cost (Year 10) | 7.64% |
DRIP vs No DRIP Comparison
| Without DRIP - Portfolio Value | $33,597.91 |
| Without DRIP - Total Return | $20,061.79 |
| With DRIP - Portfolio Value | $49,178.78 |
| With DRIP - Total Return | $24,178.78 |
| With DRIP - Total Shares | 731.87 |
DRIP Growth Over Time
| Year 1 | $1,000.00/yr | $26,750.00 total |
| Year 2 | $1,070.00/yr | $28,622.50 total |
| Year 4 | $1,225.04/yr | $32,769.90 total |
| Year 6 | $1,402.55/yr | $37,518.26 total |
| Year 8 | $1,605.78/yr | $42,954.65 total |
| Year 10 | $1,838.46/yr | $49,178.78 total |
REIT Notes
| Distribution Requirement | REITs must distribute 90%+ of taxable income |
| Tax Treatment | Dividends typically taxed as ordinary income |
| Tip | Hold REITs in tax-advantaged accounts when possible |
Use the REIT Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our REIT Calculator helps you visualize the potential growth of your real estate investment trust (REIT) portfolio, factoring in dividend reinvestment (DRIP) and future dividend increases. Understanding your projected income and total return is crucial for long-term financial planning, especially for income-focused investors looking towards milestones like 2026. This tool empowers you to make informed decisions about your REIT allocations and assess their contribution to your future financial goals.
This calculator uses a compounding growth model. The initial investment amount is used to calculate the number of shares purchased at the current share price. Each year, the annual dividend per share is distributed and then, if DRIP is enabled, reinvested to purchase additional shares at the projected year-end share price, which incorporates the assumed annual share price growth. The dividend growth rate is applied to the dividend per share for subsequent years, ensuring your income projections reflect potential increases.
Remember that past performance is not indicative of future results; dividend growth and share price appreciation are estimates. Overly optimistic growth rates can lead to unrealistic projections, so use conservative estimates for a more reliable forecast. Don't forget to account for potential taxes on dividends, which can impact your net reinvestment amount.
Example: Investing in a REIT for Long-Term Growth
- 1 You invest $10,000 in a REIT today. The current share price is $50, the annual dividend per share is $2.00, and you anticipate a 3% annual dividend growth rate. You also expect a 5% annual share price growth and plan to reinvest all dividends (DRIP).
- 2 Initial shares purchased: $10,000 / $50 = 200 shares. By the end of 2026, assuming DRIP and growth, the calculator will project your total shares, total dividend income for that year, and the portfolio's market value.
- 3 By the end of 2026, your portfolio could be worth approximately $13,000, having generated around $650 in annual dividends that year, with your share count increasing to roughly 245 shares due to reinvestment.
- 4 This example demonstrates how consistent dividend reinvestment and modest growth can significantly boost your REIT portfolio over several years. The power of compounding, driven by both dividend and share price appreciation, becomes evident. You can then adjust your investment strategy based on these projections.
Source: SEC · Last updated: April 2026
Frequently Asked Questions
How much do REITs pay in dividends?
Are REIT dividends taxed differently?
Should I hold REITs in a tax-advantaged account?
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