How to use this calculator
- Enter positive net earnings, dividends paid.
- 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
Retention=(earnings−dividends)/earnings.
Assumptions and limitations
Dividends above earnings create a negative result; repurchases are not included and cash retention may differ.
Worked example
With positive net earnings = 100000, dividends paid = 40000, retention ratio is approximately 60%.
What the result means
Measure the share of current earnings retained under this payout convention.
Common questions
How should I interpret retention ratio?
Measure the share of current earnings retained under this payout convention.
What should I check before using this result?
Dividends above earnings create a negative result; repurchases are not included and cash retention may differ.
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.