🌱 Sustainable Growth Rate Calculator
Growth supported by earnings retention
How to Use This Calculator
1
Enter ROE
Use return on equity in percent.
2
Enter retention ratio
Retention = 1 − payout ratio (in % terms).
3
Calculate
SGR is the growth supported without external equity.
Formula
SGR = ROE × Retention Ratio
Frequently Asked Questions
What if retention is 0%?
SGR is 0%—no internal growth without reinvestment.
Can retention exceed 100%?
Not in percent terms; values above 100% are not meaningful here.