# Internal Growth Rate Calculator

Instructions: Use this Internal Growth Rate Calculator to compute a internal growth rate, by providing the retention (plow-back) ratio ($$b$$) and the return on assets $$(ROA)$$:

Retention Plowback Ratio $$(b)$$ =
Return on Assets $$(ROA)$$ =

## Internal Growth Rate Calculator

More about this Internal growth rate calculator so you can better understand how to use this solver: The Internal growth rate of a firm depends on the retention (plowback) ratio $$(RR)$$ and the return on assets $$(ROA)$$ using the following growth rate formula:

$g = \displaystyle \frac{ROA \times b}{1 - ROA \times b}$

### Other related Finance Calculators

Closely related to the idea of internal growth rate is the concept of sustainable growth rate.

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