Retained Earnings Calculator

Your details

The retained earnings balance at the start of the period, from last period's balance sheet.
The company's bottom-line profit (or loss) for the period, from the income statement. Enter a negative value for a net loss.
Choose whether to enter the total dividends paid or a percentage of net income to distribute.
Total cash dividends paid out to shareholders this period.
Number of common shares outstanding. Used to calculate retained earnings per share.
Currency
Ending retained earningsPositive balance
$240,000.00

Beginning retained earnings + net income - dividends paid

Dividends distributed$10,000.00
Earnings retained this period$40,000.00
Retained earnings per share$2.4000
Effective payout ratio20%
Retention ratio (plowback)80%

Ending retained earnings: $240,000

  • The business retained $40,000 this period, growing the balance by that amount.
  • The effective payout ratio is 20.0% and the retention (plowback) ratio is 80.0%.
  • Retained earnings per share: $2.4000, reflecting equity accumulated on behalf of each shareholder.

Next stepCompare the ending balance with total assets to gauge how much of the company is self-financed by accumulated profits.

 = Powered by OnlyCalculators