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Profit Retained After Dividends & Retention Ratio

Calculate the current-period amount left after dividends and its ratio to positive net income, with reverse paths.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Net income of 1,000 and dividends of 250 leave 750 from that period, giving a retention ratio of 75%.

Period earnings retained = net income − dividends; retention ratio = period earnings retained Ă· net income

Worked example

Enter these known values and leave the other values blank.

Positive net income for the period
1000 USD
Dividends paid for the period
250 USD
Period earnings left after dividends
750 USD
Retention ratio
75 %

Assumptions and limitations

  • Net income is positive and dividends are nonnegative. Zero or negative net income needs a different interpretation.
  • The retained amount is for the entered period, not cumulative retained earnings on the balance sheet.
  • A negative ratio means dividends exceed this period’s income. It does not prove the company borrowed, nor predict its future performance.

Common questions

Does retained profit mean cash was reinvested?

No. This is an earnings allocation calculation, not a cash-flow trace or proof of investment.

Why can the retained amount be negative?

Dividends can exceed the entered period’s income. The subtraction is negative without identifying the funding source.

References

Bookify requires positive period income and separates overlapping retention-message ranges.

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