Finance / CALCULATOR

Simple Sustainable Growth Rate

Simple Sustainable Growth Rate: 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 return on equity in %.
%
Enter retention ratio in %.

Formula

g=ROE × retention ratio.
  • 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

Example inputs
  • 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.