The Retention Ratio Calculator is an essential financial tool that helps businesses determine the proportion of earnings retained for reinvestment versus distributed as dividends. This powerful calculator enables companies to analyze their reinvestment efficiency and make informed decisions about their earnings allocation strategy. By measuring the percentage of net income retained within the business, organizations can better understand their growth potential and financial sustainability. The tool provides valuable insights for financial planning, helping stakeholders evaluate the company’s commitment to internal growth and expansion opportunities. Whether you’re a financial analyst, business owner, or investor, this calculator offers clear insights into a company’s reinvestment practices and long-term growth strategy. Start using our Retention Ratio Calculator today to make more informed decisions about your company’s earnings distribution and reinvestment policies.
Use the calculator by entering net income and dividends; it returns the retention ratio—the share of earnings kept for reinvestment. S&P 500 companies retained roughly 69 % of their 2022 profits (FRED, 2022).
Retention ratio shows how much profit stays in the business. Enter net income and dividends; the calculator returns the share kept, which ranges from 0-100 %. In 2022 S&P 500 companies retained about 56 % of earnings (FactSet, 2023).
