% of profit paid as dividends. The Dividend Payout Ratio Calculator takes dividends paid for the year, net income and returns dividend payout ratio plus retention ratio, profit retained. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Investment maths is about comparing money at different points in time on a fair basis. Compound rates, discounting and annualised returns let you compare options of different sizes and durations. Use the worked example below to check the maths against your own figures.
How the Dividend Payout Ratio Calculator works
The share of profit returned to owners. Mature companies pay out 40–60%; growth companies retain almost everything. Above 100% means dividends are being funded from reserves or debt.
Worked example
With the example values (dividends paid for the year of $200,000, net income of $800,000), the dividend payout ratio is 25%; retention ratio 75%, profit retained $600,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is dividend payout ratio calculated?
payout ratio = dividends ÷ net income.
Which figures do I need?
Dividends paid for the year, net income. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the calculator account for taxes and fees?
Only where there is an input for them. For a true net return, add fees and taxes to your inputs or use the stock and crypto profit calculators, which include them.
