Patronage Dividend Calculator
See how a cooperative's surplus is shared with you — in proportion to how much you used the co-op, not how much capital you put in.
Your numbers
The co-op's annual surplus available to distribute, after reserves.
Your purchases, volume delivered, or labor hours.
All members' patronage combined (same unit as yours).
Share paid in cash now; the rest is retained as equity. In the US, a qualified allocation needs at least 20% cash.
Doing this for every member at year end?
The year-end pack works it out for the whole co-op from your totals:
- Each member's allocation, split into cash and retained equity
- Every member's capital account, carried forward
- A written notice of allocation for each member
- A member-by-member file your accountant can use for Form 1099-PATR
Tell us about your co-op and we will reply by email.
How patronage refunds work
The principle
Patronage refunds distribute surplus in proportion to how much each member used the cooperative — their purchases, the volume they delivered, or the hours they worked — not how much they invested. This is the third ICA cooperative principle, member economic participation.
The formula
Your refund = (your patronage ÷ total member patronage) × distributable surplusCash vs retained equity
Most co-ops pay only part of a refund in cash and retain the rest as equity credited to your capital account, redeemed in a later year. This builds the co-op's capital without member debt.