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.
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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
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.