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Internal Growth Rate from ROA and Retention Ratio Calculator

Maximum growth without external financing.

Calculates internal growth rate g = (ROA × b) / (1 − ROA × b), where ROA is return on assets and b is the retention (plowback) ratio.

Priya Venkatesan By Priya Venkatesan
Published Last reviewed 1 min read

Inputs

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Results

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

g_int = (ROA · b) / (1 − ROA · b)

In depth

Calculates internal growth rate g = (ROA × b) / (1 − ROA × b), where ROA is return on assets and b is the retention (plowback) ratio.