• 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) = ?