Retained Earnings Calculator for Ending Balance

Retained earnings are cumulative profits kept in the business after dividends. The statement of retained earnings is a bridge: beginning balance plus net income minus dividends equals the ending balance that sits in equity. On a one-period view, $100,000 beginning, $30,000 income, and $10,000 dividends produce $120,000 ending and a $20,000 increase in equity. Over several periods the same identity repeats, and optional growth rates let you sketch a simple forecast rather than a single year. The retained earnings calculator starts with beginning retained earnings and the first period’s net income and dividends. For each period it adds income, subtracts dividends, then multiplies income by (1 + income growth) and dividends by (1 + dividend growth) for the next period. Total net income and total dividends are the sums of those period amounts. Change in retained earnings = ending balance − beginning balance, which equals total income minus total dividends when there are no other equity adjustments. Owners and analysts use the roll-forward when checking whether a dividend policy is sustainable, when building a three-statement sketch, or when converting a net-income forecast into the equity that supports book value. A company that pays out more than it earns will shrink retained earnings, reduce book equity, and may need new capital or a dividend cut. Zero dividends are allowed; leave the field blank or enter 0 for a full-retention case. The forecast omits share issues, buybacks, other comprehensive income, prior-period adjustments, and treasury stock. Beginning retained earnings must be positive in this form, which does not fit an accumulated deficit. Legal reserves, preferred dividends, and restricted retained earnings can make the payable amount smaller than the raw roll-forward. Use the general ledger for a filing, and ask an accountant if dividends, legal reserves, or restrictions on distribution apply in your jurisdiction.