Finance / CALCULATOR

Earnings Retention Ratio

Earnings Retention Ratio: a supplied-input model with explicit assumptions and a worked example.

Runs on your deviceUpdates as you typeFormula & example ↓
01

Your inputs

Adjust the values to explore a different result.

Enter net income.
Enter dividends.

Formula

retention=1−dividends/net income.
  • Use the units shown beside each field.
  • Results update automatically whenever you change an input.
  • Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
  • Positive net income required. Dividends above income produce a negative retention ratio; no sustainability conclusion.

Example Calculation

Example inputs
  • Net income: 100
  • Dividends: 30

Net income = 100; Dividends = 30. The primary result is 70.

Frequently asked questions

How do I use this calculator?

Enter net income, dividends. The result updates automatically. Use Reset to restore the example values.

What method does it use?

retention=1−dividends/net income.. Positive net income required. Dividends above income produce a negative retention ratio; no sustainability conclusion.

Why might a rounded result differ?

The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.

Are my inputs saved online?

No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.

Check the assumptions and units before using this result. Read about calculation methods.