Internal Growth Rate Calculator

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.

internal growth rate calculator

Related Terms

internal growth rate calculator
internal growth rate formula
how to calculate internal growth rate
internal growth rate and sustainable growth rate
internal growth rate equation
internal growth rate example
internal growth rate calculation excel
sustainable growth rate and internal growth rate