💰 Retention Ratio Calculator
Calculate what percentage of a company’s earnings are reinvested in the business rather than paid out as dividends.
$
$
What is the retention ratio?
The retention ratio, also known as the plowback ratio, shows what percentage of a company’s net income is kept and reinvested in the business rather than distributed to shareholders as dividends.
The formula
Retention Ratio = 1 − Dividend Payout Ratio = (Net Income − Dividends Paid) / Net Income × 100. High-growth companies typically have high retention ratios (reinvesting most or all earnings), while mature companies often pay out more as dividends.
This calculator is for general financial-analysis education.
Last reviewed August 2026