Retention Ratio Calculator

Posted by Dinesh on

Online retention ratio calculator calculates proportion of net income retained to fund the operational needs of a business.

The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends. It is the opposite of the payout ratio, which measures the percentage of earnings paid out to shareholders as dividends.

Retention Ratio Calculation

Formula:

Retention ratio = addition to retained earnings ÷ net income