Calculator Inputs and Outputs
Inputs
- Return on equity (%) — example: 16
- Dividend payout ratio (%) — example: 35
Results
- Sustainable growth rate
- Retention ratio
Formula used
Sustainable growth = ROE × retention ratio.
How to Use the Sustainable Growth Rate Calculator
Enter the requested values, check the units and assumptions, then select Calculate Sustainable Growth Rate. The built-in defaults provide a complete working example.
Formula
Sustainable growth = ROE × retention ratio.
Understanding the Results
The primary answer appears first. Supporting outputs show related quantities, conversions, dates, costs, ratios, or intermediate values. Calculations keep additional precision before display rounding.
Accuracy Tips
- Use measured values and consistent units.
- Review assumptions, waste rates, fees, timing, and efficiency inputs.
- Recalculate after changing any project condition.
Important Note
This tool provides an informational estimate. Confirm critical financial, medical, construction, scientific, tax, legal, or safety decisions with an appropriately qualified professional.
Calculation Standards
This tool uses documented formulas and high-precision internal values. Displayed results may be rounded for readability. Review the assumptions and verify important decisions with a qualified professional.
Read our calculation methodology