# Sustainable Growth Rate Calculator

Instructions: Compute a sustainable growth rate $$(g)$$, by providing the retention (plow-back) ratio ($$b$$) and the return on equity $$(ROE)$$:

Retention Plowback Ratio $$(b)$$ =
Return on Equity $$(ROE)$$ =

#### Sustainable Growth Rate Calculator

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

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

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