Share of net income paid to shareholders as dividends, with the retention ratio kept for growth.. Dividend Payout Ratio Calculator is a free online tool from the ToolsRift Finance & Health Calculators collection. It runs entirely in your browser — nothing to install, no signup, and your data never leaves your device.
Enter total dividends and net income, or per-share figures. The calculator shows the dividend payout ratio and the retention ratio kept for growth.
Payout ratio = total dividends / net income × 100, or dividend per share / earnings per share. It shows how much profit is returned to shareholders.
The retention ratio is the profit kept in the business: 100% minus the payout ratio. Retained earnings fund growth, debt repayment and reinvestment.
It depends on the company's stage. Mature firms often pay out more, while growth firms retain most earnings. A payout above 100% is unsustainable long term.