How to use this calculator
- Enter return on equity (%), earnings retention (%).
- 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
This simple convention assumes stable ROE, payout and leverage; alternative definitions use a denominator adjustment. It is not a forecast.
Worked example
With return on equity (%) = 15, earnings retention (%) = 60, simple sustainable growth rate is approximately 9%.
What the result means
Estimate growth supported by retained earnings under a stable financing-policy model.
Common questions
How should I interpret simple sustainable growth rate?
Estimate growth supported by retained earnings under a stable financing-policy model.
What should I check before using this result?
This simple convention assumes stable ROE, payout and leverage; alternative definitions use a denominator adjustment. It is not a forecast.
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.