Sustainable Growth Rate Calculator

Enter the return on equity (ROE) and the retention rate into the calculator to determine the sustainable growth rate. The retention rate is equal to 1 minus the dividend payout ratio.

Sustainable Growth Rate Formula

The following equations are used to calculator the sustainable growth rate of a company.

SGR = (ROE) * RR

SGR = (ROE) * ( 1 – DPR )

ROE = Net Income / Equity

  • Where SGR is the sustainable growth rate
  • ROE is the return on equity
  • RR is the retention rate
  • DPR is the dividend payout ratio

FAQ

What is a sustainable growth rate?

A sustainable growth rate is the rate at which a company can re-invest capital back into it’s business while still retaining overall growth of the company.

How can sustainable growth rate increase?

The rate at which a company can grow is dependent on many factors, but the quickest way to increase expansion is through greater capital through investments or revenue. Typically early on in a business life cycle, most of the capital comes from investment.

sustainable growth rate calculator

Related Terms

sustainable growth rate calculator
sustainable growth rate formula
how to calculate sustainable growth rate
sustainable growth rate
sustainable growth formula
the sustainable growth rate
sustainable growth rate definition
sustainable growth rate equation
internal growth rate and sustainable growth rate
negative sustainable growth rate
self sustainable growth rate
sustainable growth rate calculator excel
long term sustainable growth rate
sustainable growth rate model
sustainable growth rate calculator online
sustainable growth rate example
sustainable growth rate formula cfa
how to calculate the sustainable growth rate
sustainable growth equation
sustainable growth rate roe
calculate sgr
sustainable growth rate finance
sustainable growth rate ratio
how do you calculate sustainable growth rate
sustainable rate of growth calculator
sustainable growth rate and internal growth rate