Retained Earnings Calculator

Ending Retained Earnings = Beginning Retained Earnings + Net Income (or − Net Loss) − Dividends Paid. It's a running balance carried forward on the balance sheet each accounting period.

Enter the net loss as a negative number — the formula subtracts it from the beginning balance the same way, which can bring retained earnings negative (sometimes called an 'accumulated deficit').

Yes. A company that has paid out more in dividends and losses than it has earned over its life will show negative retained earnings (accumulated deficit) — this is common for early-stage or turnaround companies and isn't inherently alarming on its own.

No — retained earnings is an equity account showing cumulative profit kept in the business, not a cash balance. The actual cash may already be invested in inventory, equipment, or other assets.

Yes — use the 'solve for' selector to rearrange the same formula. For example, if you know the ending and beginning balances plus net income, you can back into the dividends paid, which is useful when reconstructing a period from incomplete records.