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Retention Ratio & Sustainable Growth Rate Calculator

g_sustainable = ROE · (1 − payout).

Compute the retention ratio (b = 1 − payout) and the sustainable growth rate g = ROE · b — the maximum rate at which a company can grow earnings without issuing new equity or changing its capital structure.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see 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

b = 1 − payout; g = ROE · b.

In depth

Compute the retention ratio (b = 1 − payout) and the sustainable growth rate g = ROE · b — the maximum rate at which a company can grow earnings without issuing new equity or changing its capital structure.