Understanding DRP Rounding Methods

A Dividend Reinvestment Plan (DRP) calculation can produce a fraction of a share. Navexa’s DRP Setting controls how automatic DRP converts that calculation into an allocation and whether it carries an unused balance forward.

Choose the method that matches your registry or broker statement. Selecting a method in Navexa changes your tracking calculation, not the rules of your actual plan.

The examples below use an illustrative AUD $100 available to reinvest at AUD $27 per share, with no opening balance. Before rounding, that buys approximately 3.70 shares.

Round Down records three whole shares, worth AUD $81. The remaining AUD $19 is not carried into the next calculation by this Navexa setting.

That does not establish what happens to the money in your real plan. Check the plan’s rules and your statement for how unused amounts are handled.

Round Up rounds approximately 3.70 shares to four. At AUD $27 per share, their calculated value is AUD $108, which is AUD $8 more than the AUD $100 dividend. This demonstrates the rounding calculation, not how a real plan funds an allocation.

Use this method only when it matches your actual allocation. Your registry statement determines the shares received and any cash adjustment. If the calculated result differs, enter the actual allocation using the instructions below.

Round to Nearest rounds the calculated share quantity to the nearest whole share. Approximately 3.70 shares rounds to four. For comparison, AUD $100 at AUD $30 per share gives approximately 3.33 shares, which rounds to three.

Round Down with Balance Tracking records three whole shares and carries the unused AUD $19 into the next DRP calculation. The next allocation uses the new amount available for reinvestment plus that carried balance.

For example, if the next reinvestment also provides AUD $100 at AUD $27 per share, AUD $119 is available. That buys four whole shares for AUD $108 and leaves AUD $11 to carry forward.

Check your plan documents and statements for the rounding rule and whether unused amounts carry forward. Set that method using How to Enable or Disable Automatic Dividend Reinvestment (DRP) in Navexa.

Compare the calculated share quantity and any carried balance with your statement. A difference may also come from an incorrect opening balance, reinvestment price or historical share quantity.

If you know the final shares or units and reinvestment price for a payment, you can record those figures directly using How to Enable or Edit DRP for a Specific Dividend in Navexa. You do not need to choose a rounding method in that editor.

If you stopped and restarted DRP, check any carried balance against the registry records rather than assuming it continued unchanged. See Manage Mixed Cash and Reinvested Dividends for the historical setup workflow.

Remember, this is general information, not personal financial advice.