Accounting learning tool
Retained Earnings Roll-Forward Calculator
Reconcile opening retained earnings with profit, dividends and prior-period adjustments.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Understand Retained Earnings Roll-Forward
One idea, three depths
Choose how deeply to explain Retained Earnings Roll-Forward
Retained Earnings Roll-Forward: Reconcile opening retained earnings with profit, dividends and prior-period adjustments.
Age 5Explain it to a 5-year-oldStart with a picture
Imagine using Retained Earnings Roll-Forward to answer this question: reconcile opening retained earnings with profit, dividends and prior-period adjustments? Enter Opening retained earnings, Net income, Dividends declared, and 1 other input; the calculator shows Closing retained earnings. Try changing one number and watch what happens to Closing retained earnings. The answer tells you Closing retained earnings.
Age 15Explain it to a 15-year-oldConnect it to the formula
Other comprehensive income normally follows a separate equity component. Confirm the treatment of corrections under the applicable reporting framework. The rule is Closing retained earnings = opening retained earnings + net income − dividends + prior-period adjustments. Its input values are Opening retained earnings, Net income, Dividends declared, Net prior-period adjustment, and the main result is Closing retained earnings. Try changing one number and watch what happens to Closing retained earnings.
CollegeExplain it at college levelState the model precisely
This calculator evaluates one accounting relationship within a consistent entity, currency, reporting period and recognition policy. The implemented relation is Closing retained earnings = opening retained earnings + net income − dividends + prior-period adjustments, evaluated from Opening retained earnings, Net income, Dividends declared, Net prior-period adjustment to produce Closing retained earnings. Other comprehensive income normally follows a separate equity component. Confirm the treatment of corrections under the applicable reporting framework. Recognition, measurement, tax, consolidation, foreign-currency and disclosure rules may require adjustments under the accounting framework that applies to the entity.
What this accounting tool does
Reconcile opening retained earnings with profit, dividends and prior-period adjustments.
Why the relationship works
Other comprehensive income normally follows a separate equity component. Confirm the treatment of corrections under the applicable reporting framework.
The accounting formula
Closing retained earnings = opening retained earnings + net income − dividends + prior-period adjustments
Inputs and period consistency
This model uses Opening retained earnings, Net income, Dividends declared, Net prior-period adjustment. Use the same reporting period, currency, entity boundary and accounting policy for every input.
What the result means
The primary output is Closing retained earnings; supporting outputs include Earnings retained this period, Dividend payout ratio. Trace each amount back to the relevant ledger or statement line before relying on it.
Limits of this compact model
The calculator teaches one relationship. Recognition, measurement, tax, consolidation, foreign-currency and disclosure rules may require additional adjustments under the framework that applies to the entity.
Supporting sourcesAcademic referencesPrimary standards, textbooks and complete citations
Standards, reading and academic references
Use the calculator as the worked interaction, then consult the primary standards and academic textbooks listed below. MW SysArc links to the original sources; the explanation on this page is original and does not reproduce them.
Principles of Accounting, Volume 1: Financial Accounting
Read the free OpenStax financial accounting textbookCite this book
- APA 7
- Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of accounting, volume 1: Financial accounting. OpenStax. https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
- MLA 9
- Franklin, Mitchell, et al. Principles of Accounting, Volume 1: Financial Accounting. OpenStax, 2019, https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters.
- Chicago author-date
- Franklin, Mitchell, Patty Graybeal, and Dixon Cooper. 2019. Principles of Accounting, Volume 1: Financial Accounting. Houston, TX: OpenStax. https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters.
OpenStax entries are free to read online. Follow the licence shown on each linked source before redistributing or adapting its content.
Reuse the page responsiblyCite this pageAPA, MLA, Chicago, Harvard, BibTeX and RIS
These formats cite this calculator page itself. They are separate from the academic references above, which support the mathematical method and terminology.
APA 7
MW SysArc. (2026, July 21). Retained Earnings Roll-Forward Calculator. MW SysArc Tools. https://accounting.mwsysarc.com/retained-earnings-rollforward
MLA 9
MW SysArc. “Retained Earnings Roll-Forward Calculator.” MW SysArc Tools, 21 July 2026, https://accounting.mwsysarc.com/retained-earnings-rollforward. Accessed 26 Aug. 2026.
Chicago 17
MW SysArc. “Retained Earnings Roll-Forward Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 26, 2026. https://accounting.mwsysarc.com/retained-earnings-rollforward.
Harvard
MW SysArc (2026) ‘Retained Earnings Roll-Forward Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://accounting.mwsysarc.com/retained-earnings-rollforward (Accessed: 26 August 2026).
BibTeX and RIS records
BibTeX
@misc{mwsysarc_retained_earnings_rollforward_2026,
author = {{MW SysArc}},
title = {Retained Earnings Roll-Forward Calculator},
howpublished = {MW SysArc Tools},
year = {2026},
url = {https://accounting.mwsysarc.com/retained-earnings-rollforward},
note = {Published July 21, 2026; accessed August 26, 2026}
}RIS
TY - ELEC
AU - MW SysArc
TI - Retained Earnings Roll-Forward Calculator
T2 - MW SysArc Tools
PY - 2026
DA - 2026-07-21
Y2 - 2026-08-26
UR - https://accounting.mwsysarc.com/retained-earnings-rollforward
N1 - Published July 21, 2026
ER -Clear answers
Frequently asked questions
What does the Retained Earnings Roll-Forward do?
Reconcile opening retained earnings with profit, dividends and prior-period adjustments.
How does the Retained Earnings Roll-Forward work?
The calculator applies Closing retained earnings = opening retained earnings + net income − dividends + prior-period adjustments. Other comprehensive income normally follows a separate equity component. Confirm the treatment of corrections under the applicable reporting framework.
What can I learn from the Retained Earnings Roll-Forward?
You will connect Opening retained earnings, Net income, Dividends declared, Net prior-period adjustment to Closing retained earnings, then see how the relationship belongs in the accounting process.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as an educational or reconciliation reference. Confirm the reporting period, accounting policy and source records before relying on it.
Last reviewed . Calculations tested .