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Retained Earnings Calculator

Calculate ending retained earnings from beginning balance, net income, and dividends paid.

Retained earnings balance at the start of the period
Net income (or net loss, enter negative) for the period
Total dividends paid to shareholders during the period

Results

Ending Retained Earnings$0

📖What is it?

Retained earnings represent the cumulative net income a company has kept (retained) rather than distributing as dividends. It appears on the balance sheet under shareholders equity and funds growth, debt repayment, or share buybacks.

🎯How to use

Enter the beginning retained earnings balance, net income for the period, and any dividends paid. The formula is: Ending RE = Beginning RE + Net Income - Dividends.

💡Example scenario

Beginning retained earnings $1M, net income $500k, dividends paid $100k: Ending retained earnings = $1,400,000.

🏆Pro tip

The plowback (retention) ratio = 1 - Dividend Payout Ratio. High-growth companies typically retain most earnings (high plowback) while mature companies return more via dividends. Negative retained earnings (accumulated deficit) is a red flag, though common in early-stage companies burning cash for growth.