Enter the beginning period retained earnings, cash dividends, and stock dividends into the calculator. The calculator will evaluate and display the retained earnings of your company.
Retained Earnings Formula
The following is the retained earnings equation used by the calculator above.
RE = BP + Net Income (Profit or Loss) – C – S
- RE: Retained Earnings
- BP: Beginning Period Retained Earnings
- C: Cash Dividends
- S: Stock Dividends
What are retained earnings?
Retained earning are the total earning of a business including beginning retained earnings and net income minus the cash and stock dividends. It’s one metric used by business to understand how successful they are without investments, since investments are usually independent of how a business is operating.
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