Microeconomics

Retained Earnings Calculator

Add net income to the beginning balance and subtract dividends to find ending retained earnings, the profit a company keeps rather than pays out.

  • Free
  • No sign-up

Beginning balance, income & dividends

$
$
$

Enter the beginning balance, net income and dividends to see ending retained earnings.

Worked example

With these example inputs:

  • Beginning retained earnings$500,000
  • Net income$120,000
  • Dividends paid$40,000

Ending retained earnings: $580,000

  • Largest component, as a share75.76%
  • Average component$220,000
  • If the first figure were 10% higher$630,000

Add this calculator to your site

Free to embed. Copy the snippet below, it drops the live calculator straight into any page.

Frequently asked questions

How are retained earnings calculated?

Start with the beginning balance, add net income and subtract dividends. $500,000 plus $120,000 less $40,000 leaves $580,000.

What if net income is a loss?

Enter the loss as a negative net income. A net loss reduces retained earnings, and large or repeated losses can push the balance negative, known as an accumulated deficit.