Formula
- 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.
- Simple textbook convention g=ROE×b. Assumes stable profitability, payout and leverage; alternative timing conventions may use a denominator adjustment.
Example Calculation
- Return on equity: 15 %
- Retention ratio: 60 %
Return on equity = 15 %; Retention ratio = 60 %. The primary result is 9.
Frequently asked questions
How do I use this calculator?
Enter return on equity, retention ratio. The result updates automatically. Use Reset to restore the example values.
What method does it use?
g=ROE × retention ratio.. Simple textbook convention g=ROE×b. Assumes stable profitability, payout and leverage; alternative timing conventions may use a denominator adjustment.
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.