{
  "id": "retained-earnings",
  "version": "2e3c016ecdf1",
  "status": "published",
  "name": "Retained Earnings Calculator",
  "question": "What are my retained earnings?",
  "summary": "Computes ending retained earnings: beginning retained earnings plus net income, minus cash and stock dividends declared.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/retained-earnings-calculator",
  "markdown": "https://www.acalculator.org/finance/retained-earnings-calculator.md",
  "kind": "function",
  "method": "Total dividends = cash dividends + stock dividends. Ending retained earnings = beginning retained earnings + net income − total dividends.",
  "assumptions": [
    "No prior period adjustments; if there is one, add it to the beginning balance first.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "bre": {
        "title": "Retained earnings at the start",
        "description": "Retained earnings at the start of the period. Negative for an accumulated deficit.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "ni": {
        "title": "Net income",
        "description": "Profit for the period from the income statement. Negative for a net loss.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "div": {
        "title": "Cash dividends declared",
        "description": "Cash dividends declared to stockholders during the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "sdiv": {
        "title": "Stock dividends declared",
        "description": "The amount moved out of retained earnings for stock dividends. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "end": {
      "label": "Retained earnings at the end",
      "description": "Beginning retained earnings + net income − dividends.",
      "format": "money"
    },
    "change": {
      "label": "Change in retained earnings",
      "description": "Net income − dividends: what the period added to retained earnings.",
      "format": "money"
    },
    "dividends": {
      "label": "Total dividends",
      "description": "Cash dividends + stock dividends.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "bre": 24000,
      "ni": 33000,
      "div": 12500,
      "sdiv": 6500
    },
    "outputs": {
      "end": 38000,
      "change": 14000,
      "dividends": 19000
    },
    "text": "Starting from $24,000.00, net income of $33,000.00 less $19,000.00 of dividends leaves retained earnings of $38,000.00."
  },
  "examples": [
    {
      "given": {
        "bre": 24000,
        "ni": 33000,
        "div": 12500,
        "sdiv": 6500
      },
      "expect": {
        "end": 38000,
        "change": 14000,
        "dividends": 19000
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 14.4 Compare and Contrast Owners’ Equity versus Retained Earnings (statement of retained earnings: beginning balance + net income − dividends declared = ending balance; Clay Corporation). https://openstax.org/books/principles-financial-accounting/pages/14-4-compare-and-contrast-owners-equity-versus-retained-earnings: 24,000 + 33,000 − (12,500 + 6,500) = 38,000"
    },
    {
      "given": {
        "bre": 50000,
        "ni": -20000,
        "div": 5000
      },
      "expect": {
        "end": 25000,
        "change": -25000
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 14.4 Compare and Contrast Owners’ Equity versus Retained Earnings (statement of retained earnings: beginning balance + net income − dividends declared = ending balance; Clay Corporation). https://openstax.org/books/principles-financial-accounting/pages/14-4-compare-and-contrast-owners-equity-versus-retained-earnings; hand calculation in content.mdx: 50,000 − 20,000 − 5,000 = 25,000"
    },
    {
      "given": {
        "bre": -8000.5,
        "ni": 12250.75,
        "div": 0
      },
      "expect": {
        "end": 4250.25
      },
      "source": "hand calculation in content.mdx: −8,000.50 + 12,250.75 − 0 = 4,250.25"
    }
  ],
  "sources": [
    "OpenStax, Principles of Accounting, Volume 1, 14.4 Compare and Contrast Owners’ Equity versus Retained Earnings: the statement of retained earnings (beginning balance plus net income, less dividends declared, equals the ending balance), stock dividends among the dividends, prior period adjustments to the beginning balance, and the Clay Corporation example ($38,000). https://openstax.org/books/principles-financial-accounting/pages/14-4-compare-and-contrast-owners-equity-versus-retained-earnings (retrieved 2026-10-18)",
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: shareholders' equity is the owners' investment plus or minus earnings or losses since inception; distributed earnings are dividends. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-18)"
  ],
  "related": [
    "eps",
    "roe",
    "net-worth",
    "profit"
  ],
  "changelog": []
}