Money Tools

Retained Earnings Calculator

Estimate ending retained earnings from beginning retained earnings, net income, and dividends paid.

Updated April 12, 2026
Free online tool
Planning and research use

Why this page exists

Retained earnings are easier to understand when the beginning balance, net income, and dividends all roll into one ending figure instead of sitting in separate lines. This calculator helps visitors estimate ending retained earnings and the change in retained earnings from a simple set of inputs.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Retained earnings calculator

Estimate ending retained earnings from beginning retained earnings, net income, and dividends paid.

Result

$148,500,000

Estimated ending retained earnings based on beginning retained earnings plus net income minus dividends paid.

Ending retained earnings$148,500,000

Change in retained earnings$23,500,000

Beginning retained earnings$125,000,000

Formula summaryBeginning retained earnings + net income - dividends

$125,000,000 of beginning retained earnings plus $32,000,000 of net income minus $8,500,000 of dividends gives an ending retained-earnings estimate near $148,500,000.
$23,500,000 is the net change from income and dividends in this simple calculation.
Use the result as a simple equity-rollforward estimate only, because real statements can include prior-period adjustments and other retained-earnings changes.

This is a simple retained-earnings estimate. Real financial statements can include prior-period adjustments and other equity changes beyond the basic retained-earnings formula used here.

Planning note

Last updated April 12, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter beginning retained earnings, net income, and dividends paid.

The calculator adds net income to beginning retained earnings and subtracts dividends.

It shows the ending retained earnings estimate along with the change created by income and dividends.

Understanding your result

This is a standard retained-earnings estimate, not accounting advice. Real financial statements can also include adjustments that are not reflected in this simplified formula.

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Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Roll a beginning balance forward

A quick retained-earnings estimate can make it easier to see how profit and dividends affect ending equity.

Check the effect of a dividend decision

Changing the dividends input can show how much retained earnings may stay in the business instead of being paid out.

Use it with other balance-sheet tools

Retained earnings can be easier to interpret when paired with leverage, liquidity, or cash-flow snapshots.

FAQ

Common questions

How are retained earnings calculated here?

The calculator uses the standard formula of beginning retained earnings plus net income minus dividends paid.

What does the change in retained earnings show?

It shows the net effect of the period’s income and dividends on the retained-earnings balance.

Why might a real statement differ from this estimate?

Prior-period adjustments and other equity changes can affect retained earnings beyond the simplified formula used here.

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Keep comparing

Use these related tools to compare nearby scenarios, check a second estimate, or keep narrowing down the right decision.

Money ToolsUpdated April 12, 2026