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Finance Calculators

Dividend Payout Ratio Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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Verified formula Private

Dividend payout ratio

40.00%

Retention ratio
60.00%

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Dividend Payout Ratio Calculator

The Dividend Payout Ratio Calculator works out your dividend payout ratio, along with 1 related figure in an instant. Enter total dividends paid and net income and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the total dividends paid.
  2. Enter the net income.
  3. Read off your dividend payout ratio, together with retention ratio — the calculator updates automatically, with no button to press.

Formula

The Dividend Payout Ratio Calculator uses the formula:

Dividend payout ratio = Total dividends paid ÷ Net income × 100

Worked example

For example, with total dividends paid of ₹200,000 and net income of ₹500,000, the dividend payout ratio is 40.00%.

Inputs used
Total dividends paid ₹200,000
Net income ₹500,000
Results
Dividend payout ratio 40.00%
Retention ratio 60.00%

Results are estimates for educational use, not professional advice.

Key terms explained

Ratio
A comparison of two quantities showing how many times one contains the other.

Frequently asked questions

It is dividends divided by net income, as a percentage. Paying 2,00,000 dividends from 5,00,000 profit is a 40% payout ratio.

It is the share of profit kept in the business, equal to 100% minus the payout ratio, used to fund growth.

It varies by company and sector. Mature firms often pay out more, while growth companies retain more to reinvest.

Yes, if a company pays more in dividends than it earns. That is usually unsustainable and worth investigating.

The Dividend Payout Ratio Calculator uses the formula: Dividend payout ratio = Total dividends paid ÷ Net income × 100. For example, with total dividends paid of ₹200,000 and net income of ₹500,000, the dividend payout ratio is 40.00%.

Enter the total dividends paid. Enter the net income. Read off your dividend payout ratio, together with retention ratio — the calculator updates automatically, with no button to press.

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