# Internal Growth Rate

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Internal growth rate, abbreviated as IGR, a dimensionless number, is the highest rate of growth a company is able to achieve without using any external funds.

## Internal Growth Rate Formula

 $$\large{ IGR = \frac{ RR }{ ROA } }$$

### Where:

$$\large{ IGR }$$ = internal growth rate

$$\large{ RR }$$ = retention ratio

$$\large{ ROA }$$ = return on asset