Calculate a company's sustainable growth rate (SGR) using Return on Equity (ROE) and the retention ratio. Understand your growth potential.
Ready to Calculate
Enter values on the left to see results here.
Found this tool helpful? Share it with your friends!
The Sustainable Growth Rate Calculator is an essential tool for financial analysts, business owners, and strategic planners. It accurately determines a company's maximum growth rate achievable without external equity or debt financing. By leveraging key financial metrics – specifically Return on Equity (ROE) and the retention ratio – this calculator provides critical insights into an organization's internal capacity for expansion. Understanding your sustainable growth rate allows for realistic goal setting, informs capital allocation decisions, and helps assess long-term financial health and strategic viability. Optimize your planning with a clear view of your intrinsic growth potential.