Enter the retention plowback ratio and return on assets of a company into the calculator to determine the internal growth rate.

## Internal Growth Rate Formula

The following formula can be used to calculate an internal growth rate of a business.

IGR = ROA * b / (1- ROA * b)

- Where IGR is the internal growth rate
- ROA is the return on assets
- b is the plowback ratio

## FAQ

**What is an internal growth rate?**

An internal growth rate is a business metric used to understand how a companies internal revenue is growing.

**What is a plowback ratio?**

A plowback ratio is a ratio that measures amount of earnings that are retained by a company after it has paid out dividends to shareholders.

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