Residual Income (RI) Calculator

Residual income calculator for businesses, calculating equity charge and residual income based on equity capital, cost of equity, and net income.

Result Equity Charge $0 Residual Income $0

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Equity Charge Formula

Equity charge = Equity capital * ( Cost of equity / 100 )

$5600 * (23% / 100) = $1288.0 This result represents the equity charge calculated using the given formula, which assumes a cost of equity of 23% and an equity capital of $5600.

Residual Income Formula

Residual income = Net income - Equity charge

$16600 - $14600 = $2000 Residual income is the profit left after covering the equity charge of $2000 from net income of $16600.

Meaning

Residual Income (RI) is the amount of money earned from investments or other income sources after deducting all expenses and financial obligations.