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.
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