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 = ?