Enter the retained earnings (\$) and the percentage of capital in equity (%) into the Retained Earnings Breakpoint Calculator. The calculator will evaluate the Retained Earnings Breakpoint.

## Retained Earnings Breakpoint Formula

The following two example problems outline the steps and information needed to calculate the Retained Earnings Breakpoint.

REB = RE / (We/100)

Variables:

• REB is the Retained Earnings Breakpoint (\$)
• RE is the retained earnings (\$)
• We is the percentage of capital in equity (%)

## How to Calculate Retained Earnings Breakpoint?

The following steps outline how to calculate the Retained Earnings Breakpoint.

1. First, determine the retained earnings (\$).
2. Next, determine the percentage of capital in equity (%).
3. Next, gather the formula from above = REB = RE / (We/100).
4. Finally, calculate the Retained Earnings Breakpoint.
5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem :

Use the following variables as an example problem to test your knowledge.

retained earnings (\$) = 300,000,000

percentage of capital in equity (%) = 50

REB = RE / (We/100) = ?