How to use this calculator
- Enter opening retained earnings, net income, dividends declared.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Prior-period adjustments, other equity changes and stock-dividend accounting are outside this simple roll-forward.
Worked example
With opening retained earnings = 100000, net income = 30000, dividends declared = 10000, closing retained earnings is approximately 120000.
What the result means
Retained earnings are accumulated accounting profits, not a separate cash account.
Common questions
How should I interpret closing retained earnings?
Retained earnings are accumulated accounting profits, not a separate cash account.
What should I check before using this result?
Prior-period adjustments, other equity changes and stock-dividend accounting are outside this simple roll-forward.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.