🔁 Retention Ratio Calculator
Earnings retained for reinvestment
Instructions
1
Enter net income
Use earnings attributable to common shareholders.
2
Enter dividends
Use cash dividends for the same period.
3
Calculate
Higher % means more reinvestment, lower payout.
Formula
Retention Ratio = (Net Income − Dividends) ÷ Net Income × 100
Common Questions
Relation to payout ratio?
Retention = 1 − Payout Ratio (in consistent terms).
Can it exceed 100%?
Yes if dividends are negative (unlikely) or due to losses; interpret carefully.