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** = ?**