Enter the retiring partners share ($) and the acquisition ratio into the Gain Ratio Calculator. The calculator will evaluate and display the Gain Ratio. 

Gain Ratio Formula

The following formula is used to calculate the Gain Ratio. 

GR = PS * AR

  • Where GR is the Gain Ratio ($)
  • PS is the retiring partners share ($) 
  • AR is the acquisition ratio 

How to Calculate Gain Ratio?

The following example problems outline how to calculate Gain Ratio.

Example Problem #1:

  1. First, determine the retiring partners share ($). 
    • The retiring partners share ($) is given as: 50,000.
  2. Next, determine the acquisition ratio. 
    • The acquisition ratio is provided as: .25.
  3. Finally, calculate the Gain Ratio using the equation above: 

GR = PS * AR

The values given above are inserted into the equation below and the solution is calculated:

GR = 50,000 * .25 = 12,500 ($)

Example Problem #2: 

For this problem, the variables required are provided below:

retiring partners share ($) = 60,000

acquisition ratio = .30

Test your knowledge using the equation and check your answer with the calculator above.

GR = PS * AR = ?