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
| Elapsed | Reinvest | No 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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NISA Dividend Reinvestment Simulation