The Retention Ratio Calculator is used to calculate the retention ratio.
Retention Ratio Definition
Retention Ratio refers to the percentage of a company’s earnings that are not paid out in dividends but credited to retained earnings. It is the opposite of the dividend payout ratio. Retention ratio is also called plowback ratio or retention rate.
The Retention Ratio calculation formula is as follows:
Retention Ratio = 1 - Dividend Payout Ratio = (Net Income - Dividends) / Net Income