Finance · Investments & Markets

Sustainable Growth Rate Calculator

Estimate growth from an entered return on equity and retention ratio.

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Quick guide

How to use this calculator

  1. Enter only the market, accounting, cash-flow, rate, or timing assumptions named by the fields.
  2. Keep currencies, periods, per-share values, and percentage conventions consistent.
  3. Review the formula and limitations before interpreting or comparing the result.

Calculation method

Calculation method

Sustainable growth = return on equity × retention ratio.

Fixed decimal inputs and scalar arithmetic remain exact until display. Root and growth calculations are explicitly marked approximate.

Worked example

Worked example

ROE of 15% and retention of 60% produce 9% sustainable growth.

Sustainable growth = return on equity × retention ratio.

Supported inputs

Precision and limits

Visible input limits

Fixed decimals accept up to 30 digits and 12 decimal places and are capped at an absolute value of 1e12 per input. Rates are capped at 1000%; narrower domains are validated by the formula.

International scope

No currency, exchange, live security price, accounting standard, tax jurisdiction, market convention, settlement rule, or regulatory disclosure is selected automatically.

Decision boundary

Results are calculations from visitor-entered assumptions, not market data, forecasts, financial advice, suitability assessments, fair-value opinions, or recommendations.

Calculator-specific assumptions

A negative entered retention ratio represents distributions exceeding earnings and can produce contraction. Ratios above 100% are rejected; the simplified relationship assumes stable profitability and financing.