đź’µ Dividend Payout Ratio Calculator
Determine the share of earnings paid out as dividends
How to Use This Calculator
1
Enter dividends
Provide total cash dividends paid during the period.
2
Enter net income
Provide the company's net income for the same period.
3
Calculate
View the % of earnings paid out to shareholders.
Formula
Payout Ratio = Dividends / Net Income
Example: Dividends=$200k, Net Income=$1,000k → 20%
About Dividend Payout Ratio
The dividend payout ratio shows the proportion of earnings returned to shareholders as dividends.
Tips
- Use net income attributable to common shareholders
- Exclude one-time items for a cleaner ratio
- Compare across peers and over time
Frequently Asked Questions
Can payout exceed 100%?
Yes, temporarily when dividends exceed earnings (e.g., due to one-offs).
Is a lower ratio better?
Not always—depends on growth prospects and firm policy.
Use cash flow instead?
Payout can also be assessed via free cash flow coverage.