Sustainable Growth Rate Calculator
Calculate the maximum growth rate a company can sustain without additional equity or increasing leverage.
How to Use the Sustainable Growth Rate Calculator
- Enter return on equity percentage.
- Enter dividend payout ratio.
- Click Calculate.
- Review sustainable growth rate.
使用例
- •Growth planning
- •Financial forecasting
- •Dividend policy analysis
計算式
SGR = (ROE × b) / (1 - ROE × b), where b = retention rate
よくある質問
What is the sustainable growth rate?
SGR is the maximum rate a company can grow using only retained earnings without needing external financing.
How to increase SGR?
Increase ROE (through better margins, asset efficiency, or leverage) or retain more earnings (lower payout ratio).
Is this calculator free?
Yes, all calculators are completely free.