How to Calculate Retention Ratio?
Retention Ratio calculator uses retention_ratio = (Net Income-Dividend)/Net Income to calculate the Retention Ratio, Retention Ratio is the proportion of earnings kept back in the business as retained earnings. Retention Ratio and is denoted by RR symbol.
How to calculate Retention Ratio using this online calculator? To use this online calculator for Retention Ratio, enter Net Income (NI) and Dividend (D) and hit the calculate button. Here is how the Retention Ratio calculation can be explained with given input values -> 0.999875 = (200000-25)/200000.