Enter the retiring partners share ($) and the acquisition ratio into the Gain Ratio Calculator. The calculator will evaluate and display the Gain Ratio.
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Gain Ratio Formula
The following formula is used to calculate the Gain Ratio.
GR = PS * AR
- Where GR is the Gain Ratio ($)
- PS is the retiring partners share ($)
- AR is the acquisition ratio
How to Calculate Gain Ratio?
The following example problems outline how to calculate Gain Ratio.
Example Problem #1:
- First, determine the retiring partners share ($).
- The retiring partners share ($) is given as: 50,000.
- Next, determine the acquisition ratio.
- The acquisition ratio is provided as: .25.
- Finally, calculate the Gain Ratio using the equation above:
GR = PS * AR
The values given above are inserted into the equation below and the solution is calculated:
GR = 50,000 * .25 = 12,500 ($)
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 = ?
