Dividend Payout Ratio Calculator

Free Dividend Payout Ratio Calculator

Determine How Much Earnings Are Paid as Dividends

The Dividend Payout Ratio Calculator allows investors to quickly see what percentage of a company’s earnings is being returned to shareholders as dividends. By entering net income and total dividend payments, this tool calculates the payout ratio, helping you evaluate the sustainability of dividend payments. Understanding the payout ratio is essential for investors who focus on income, as it shows whether a company is reinvesting enough for growth or distributing too much to shareholders. Using this calculator helps both beginners and experienced investors make informed decisions about which dividend-paying stocks to include in their portfolios, ensuring a balance between income and long-term growth.

Determine the percentage of earnings paid out as dividends.

Dividends Per Share

Earnings Per Share (EPS)

Calculation Results

Dividend Payout Ratio

0.00%

Calculation Breakdown

Formula Used: (Dividends Per Share / EPS) × 100

Dividend Payout Ratio Calculator Guide

The Formula We Use

Dividends Paid = Dividend per Share (DPS) × Shares Outstanding
EPS = Net Income ÷ Shares Outstanding
Dividend Payout Ratio % = (Dividends Paid ÷ Net Income) × 100
Alternative: Dividend Payout Ratio % = (DPS ÷ EPS) × 100
Retention Ratio % = 100 − Dividend Payout Ratio %
Cash Payout (Optional) = Dividends Paid ÷ Free Cash Flow

Example Calculation (USD)

Net Income $1,200,000

DPS $1.50

Shares 400,000

(Optional) FCF $800,000

Dividends Paid = 1.50 × 400,000 = $600,000
EPS = 1,200,000 ÷ 400,000 = $3.00
Payout Ratio % (Div/NI) = 600,000 ÷ 1,200,000 × 100 = 50.00%
Payout Ratio % (DPS/EPS) = 1.50 ÷ 3.00 × 100 = 50.00%
Retention Ratio % = 100 − 50 = 50.00%
(Optional) Cash Payout = 600,000 ÷ 800,000 = 75.00%

How to Use This Calculator

Enter Net Income, DPS, and Shares Outstanding. (Optionally add Free Cash Flow.)
We compute Dividends Paid, EPS, and Payout Ratio using both valid methods.
Review Retention Ratio % to gauge how much profit is reinvested.
Use Cash Payout (if FCF given) to check dividend coverage by cash.

Tips to Read Dividend Payout Ratios

Mind the cycle: EPS can be cyclical; check multi year averages.
Growth vs income: Lower payout can fund growth; higher payout prioritizes income.
Coverage: Cross check with Free Cash Flow cash funds dividends.
By sector: “Safe” ranges vary utilities/REITs tend higher than tech.
One offs: Adjust for special dividends or unusual profits/losses.

Educational content only this is not financial advice.

Benefits of Using
Dividend Payout Ratio Calculator

Analyze Payout Ratio

Determine the portion of earnings paid as dividends accurately.

Investment Insights

Helps investors assess the sustainability of dividends.

Beginner-Friendly

Simple form for easy calculation even for beginners.

Precise Computation

Accurately calculates ratio using earnings and dividend inputs.

Global Stocks Supported

Works for companies listed in any stock exchange worldwide.

Secure & Private

All data stays local and is not stored or shared.

Frequently Asked Questions

What is dividend payout ratio?

It represents the proportion of net earnings paid out as dividends to shareholders.

How is it calculated?

Divide total dividends by net income and multiply by 100 for percentage.

Why is it important?

Helps investors understand dividend sustainability and financial health of a company.

Can beginners use it?

Yes, the inputs are straightforward and the result is clear.

Does it work for international companies?

Yes, just input earnings and dividends in the appropriate currency.

Is my data stored?

No, all calculations are done in your browser for full privacy.