Sustainable Growth Rate Calculator Excel Template
Sustainable Growth Rate Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
Download Template
Price range: $0.00 through $20.00
Calculate SGR, IGR, and DuPont components from financial statement data. Live Excel formulas update instantly as you change inputs.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Calculate your company's maximum growth potential with this professional Sustainable Growth Rate Excel template. Instantly determine the SGR and Internal Growth Rate (IGR) to understand how fast your business can expand while maintaining financial stability.
What You Can Calculate
This template calculates eight key metrics from your financial statement data:
- Sustainable Growth Rate (SGR) — Maximum growth while maintaining your current debt-to-equity ratio
- Internal Growth Rate (IGR) — Maximum growth using only retained earnings, no external financing
- Return on Equity (ROE) and Return on Assets (ROA) — Core profitability ratios
- Retention Ratio — Portion of earnings reinvested in the business
- DuPont Components — Profit Margin, Asset Turnover, and Equity Multiplier breakdown
Required Inputs
Enter five values from your financial statements:
- Net Income — From your income statement
- Total Equity — Stockholders' equity from the balance sheet
- Dividends Paid — Common dividends for the fiscal period
- Total Assets — Sum of all assets from the balance sheet
- Revenue — Total sales (enables DuPont breakdown)
Methodology
The template uses the standard SGR formula: SGR = ROE × Retention Ratio, where Retention = 1 − (Dividends/Net Income). The IGR formula is (ROA × Retention) / (1 − ROA × Retention), representing growth funded entirely by retained earnings. The 3-factor DuPont identity verifies that Profit Margin × Asset Turnover × Equity Multiplier = ROE.
Assumptions & Limitations
- SGR assumes constant ROE, constant payout ratio, and proportional debt financing
- IGR assumes no external financing — growth from retained earnings only
- Uses end-of-period balance sheet values (not period averages)
- Point-in-time calculation — actual growth depends on market conditions
Frequently Asked Questions
Yes. Copy the Calculator sheet to create multiple scenarios, then adjust the Dividends Paid input in each. This lets you compare how different retention ratios affect your SGR and IGR side-by-side. The live formulas update instantly as you change inputs.
The IGR formula breaks down when ROA x Retention Ratio >= 100%, which implies unrealistic returns. This edge case produces a mathematical impossibility (division by zero or negative), so the template displays N/A with a warning instead of an incorrect value.
Compare your company's projected growth rate against the SGR and IGR. If projected growth exceeds SGR, you'll need new equity or higher leverage. If growth is between IGR and SGR, you need debt financing but can maintain your current D/E ratio. If growth is below IGR, the company is self-funding with excess cash available.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
