Dividend Payout Ratio Calculator

Rs
Rs
Finance

The Dividend Payout Ratio Calculator shows what share of net income a company pays out as dividends. Enter total dividends and net income to get the payout ratio and the retention ratio.

Formula

Payout Ratio = Dividends ÷ Net Income × 100
  • Retention ratio = 100% − payout ratio, the share reinvested in the business.
  • Mature companies often pay out more; growth companies retain more.

Rs 300,000 dividends, Rs 1,000,000 net income

Inputs
  • Total Dividends Paid: 300000 Rs
  • Net Income: 1000000 Rs

300,000 ÷ 1,000,000 × 100 = 30% paid out, 70% retained.

Frequently asked questions

What is a healthy payout ratio?
It varies by industry, but 30–50% is common for stable firms. Over 100% means paying more than earnings, which is usually unsustainable.