Retention Ratio Calculator
This tool is used to calculate business retention ratio instantly.
Formula To Calculate Retention Ratio :
Retention ratio is the proportion of earnings kept back in the business as retained earnings.
To calculate the Retention Ratio, use the following formula
Retention Ratio = (Net Income - Dividends) / Net Income
Mr. Google retained earnings totaled = $20000 for the financial period.
Mr. Google net income = $10000 for the same financial period.
Mr. Google Retention Ratio = 0.50