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:

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



In case you have any suggestion, or if you would like to report a broken solver/calculator, please do not hesitate to contact us.

log in

reset password

Back to
log in