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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