Find what share of earnings is paid out as dividends.
Please do not make financial decisions based on these results.
What is the Dividend Payout Ratio Calculator?
Find what share of earnings is paid out as dividends. To use the Dividend Payout Ratio Calculator, enter dividends paid, net income; it returns payout ratio, retention ratio, and shows them instantly as you type.
Valuing a stock step by step
Begin with the P/E ratio and PEG ratio to see what the market pays for earnings and growth. Then check quality with ROE and ROIC, and compare ROIC with the WACC.
For a second opinion, estimate intrinsic value with the Dividend Discount Model Calculator or the Graham Number Calculator, then compute the margin of safety against today’s price.
- Returns. EPS, EPS growth, dividend yield and payout ratio measure what shareholders earn.
- Risk. Beta, unlevered beta and portfolio beta measure sensitivity to the market.
- Position tools. Stock average, stock split and market cap calculators keep your records straight.
How to use the Dividend Payout Ratio Calculator
- Fill in the fields. You will need Dividends paid ($), Net income ($). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Payout ratio, and the cards below show Retention ratio. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Dividend Payout Ratio Calculator using the default values shown in the calculator above:
Inputs
| Dividends paid ($) | 450,000 |
|---|---|
| Net income ($) | 1,200,000 |
Results
| Payout ratio | 37.5% |
|---|---|
| Retention ratio | 62.5% |
With these inputs the calculator returns Payout ratio: 37.5%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Dividends paid ($) from 450,000 to 540,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Payout ratio | 37.5% | 45% | +20% |
| Retention ratio | 62.5% | 55% | -12% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Dividend Payout Ratio Calculator reports Payout ratio and retention ratio. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Is a high payout ratio risky?
Above 80% to 100% leaves little room for reinvestment and can signal a dividend cut.
Are valuation results investment advice?
No. They are model outputs from the figures you enter. Test a range of assumptions and speak with a licensed adviser before investing.
Where do I find the inputs?
Company filings (10-K and 10-Q), investor relations pages and your broker show earnings, equity, debt and share counts.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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