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Plowback Ratio Calculator

Enter EPS and dividends per share to get the plowback and payout ratios.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

This calculator computes the plowback (retention) ratio from per-share figures as 1 − (dividends per share ÷ EPS), and reports its complement, the payout ratio (dividends per share ÷ EPS), alongside it. A plowback ratio of 0.7 means 70% of each dollar earned is retained and reinvested in the business, while the remaining 30% is paid out to shareholders as dividends.

Growth investors watch this ratio because a high plowback rate signals a company reinvesting heavily in expansion rather than returning cash — appropriate for a young, high-growth company but worth questioning in a mature one. It's also a direct input to the sustainable growth rate formula (ROE × plowback ratio), which estimates how fast a company can grow without external financing.

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