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NISA Dividend Reinvestment Simulation

Compare reinvesting dividends (compounding) versus taking them as cash from your principal, dividend yield, price growth, and holding years to see the compounding effect of tax-free NISA dividend reinvestment.

Input

JPY
%

Around 3-5% is typical for high-dividend stocks and ETFs.

%

Expected capital gain. Use 0 if none.

yrs

Result

Final value with reinvestment (NISA)

¥9,621,406

Principal

¥3,000,000

Gain

¥6,621,406

Compounding effect

¥2,247,880

Tax-free benefit

¥1,372,514

Reinvest vs. no reinvest

Reinvest (NISA, tax-free)¥9,621,406
No reinvest (dividends as cash)¥7,373,527
Difference (compounding effect)¥2,247,880

Year-by-year

ElapsedReinvestNo reinvest
Year 1¥3,180,000¥3,180,000
Year 2¥3,370,800¥3,363,600
Year 3¥3,573,048¥3,550,872
Year 4¥3,787,431¥3,741,889
Year 5¥4,014,677¥3,936,727
Year 6¥4,255,557¥4,135,462
Year 7¥4,510,891¥4,338,171
Year 8¥4,781,544¥4,544,934
Year 9¥5,068,437¥4,755,833
Year 10¥5,372,543¥4,970,950
Year 11¥5,694,896¥5,190,369
Year 12¥6,036,589¥5,414,176
Year 13¥6,398,785¥5,642,460
Year 14¥6,782,712¥5,875,309
Year 15¥7,189,675¥6,112,815
Year 16¥7,621,055¥6,355,071
Year 17¥8,078,318¥6,602,173
Year 18¥8,563,017¥6,854,216
Year 19¥9,076,799¥7,111,301
Year 20¥9,621,406¥7,373,527

How it works

  • The reinvest case (NISA, tax-free) assumes each year's dividend (value × yield) is fully reinvested and the share price also grows, compounded annually — roughly (1 + price growth + dividend yield) per year.
  • The no-reinvest case assumes the share value compounds only by the price growth rate, while dividends are taken as cash and accumulate without compounding. The shown 'no reinvestment' figure is the share value plus cumulative cash dividends.
  • The compounding effect is the difference 'reinvest minus no reinvest', an estimate of the extra value from continually reinvesting dividends.
  • The NISA tax-free benefit is the difference versus reinvesting in a normally taxed account, where dividends are taxed 20.315% (15% income tax, 0.315% special reconstruction tax, 5% resident tax) before reinvestment.
  • Dividend yield and price growth are assumed constant — a rough estimate. Actual results vary with dividend cuts or hikes, price moves, fees, exchange rates, and treatment at sale, and may fall below the principal. This tool is an estimate, not investment advice. Confirm exact rules and tax with your financial institution or official sources.

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