Accounting Share · Profit, pricing & growth
Retained Earnings Calculator
Bridge opening to closing retained earnings using income, distributions and separately identified adjustments. A negative balance is a retained-earnings deficit.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
Opening retained earnings + Net income − Dividends + Adjustments
Bridge opening to closing retained earnings using income, distributions and separately identified adjustments. A negative balance is a retained-earnings deficit.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Opening retained earnings: May be positive, zero or negative; the sign changes its effect in the displayed formula.
- Net income or loss: May be positive, zero or negative; the sign changes its effect in the displayed formula.
- Dividends charged to retained earnings: A nonnegative numeric input in the units specified by the label.
- Other signed adjustments: May be positive, zero or negative; the sign changes its effect in the displayed formula.
Worked example
Follow one calculation.
- Opening retained earnings
- 40000
- Net income or loss
- 12000
- Dividends charged to retained earnings
- 3000
- Other signed adjustments
- 0
- Calculated result
- 49,000
Load this example in the interactive form to inspect the intermediate amounts.
Assumptions and interpretation
Retained earnings are equity, not cash held in reserve. Adjustments should reflect the applicable accounting requirements.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the retained earnings calculation measure?
Bridge opening to closing retained earnings using income, distributions and separately identified adjustments. A negative balance is a retained-earnings deficit.
Which assumptions can change the result?
Retained earnings are equity, not cash held in reserve. Adjustments should reflect the applicable accounting requirements.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Financial accounting reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
