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# Sustainable Growth Rate Calculator

Sustainable Growth Rate (SGR) refers to the total level of growth that a company can sustain without using any outside financial source. In simple it's a measure of how large a company can grow using its own sources of funding, without borrowing money from other sources. Use our online sustainable growth rate calculator to determine their SGI, to know whether they have adequate capital to meet their strategic growth needs. It is important for every small and large-scale business owners.

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Sustainable Growth Rate (SGR) refers to the total level of growth that a company can sustain without using any outside financial source. In simple it's a measure of how large a company can grow using its own sources of funding, without borrowing money from other sources. Use our online sustainable growth rate calculator to determine their SGI, to know whether they have adequate capital to meet their strategic growth needs. It is important for every small and large-scale business owners.

#### Formula:

Sustainable Growth Rate = ( r × ( 1 - d )) Where, r = Return on Equity d = Dividend Payout Ratio

### Example:

Calculate sustainable growth rate of the firm if its return on equity is 12% and the divident payout ratio is 15%?

#### Solution:

Sustainable Growth Rate = ( 12 × ( 1 - 15 ))
= 10.2%