The Retained Earnings Calculator is an essential financial tool designed to help businesses accurately track and compute their company’s accumulated profits over time. This powerful calculator simplifies the process of determining ending retained earnings by considering three crucial factors: beginning retained earnings, net income (or loss), and dividends paid during the period. Whether you’re a small business owner, accountant, or financial analyst, this tool provides quick and accurate calculations that help monitor your company’s financial growth and reinvestment capacity. By maintaining precise retained earnings figures, businesses can make more informed decisions about dividend distributions, reinvestment opportunities, and overall financial strategy. Take control of your company’s financial tracking today by utilizing our user-friendly retained earnings calculator for precise and efficient calculations.
Use beginning retained earnings, add net income, subtract dividends, adjust for corrections to get ending retained earnings. A $1 million firm in the S&P 500 retained about 65 % of profits in 2023 (Statista, 2024).
You find ending retained earnings by adding current-period net income to beginning retained earnings and subtracting dividends. For S&P 500 companies, 32 % of earnings are typically paid as dividends (S&P Global, 2023).
