Enter the profit share received by the employee ($) and the total profit of the company ($) into the Profit-Sharing Ratio Calculator. The calculator will evaluate and display the Profit-Sharing Ratio. 

Profit-Sharing Ratio Formula

The following formula is used to calculate the Profit-Sharing Ratio. 

PSR = PE / TP * 100

  • Where PSR is the Profit-Sharing Ratio (%)
  • PE is the profit share received by the employee ($) 
  • TP is the total profit of the company ($) 

How to Calculate Profit-Sharing Ratio?

The following example problems outline how to calculate Profit-Sharing Ratio.

Example Problem #1:

  1. First, determine the profit share received by the employee ($). 
    • The profit share received by the employee ($) is given as: 2,500.
  2. Next, determine the total profit of the company ($). 
    • The total profit of the company ($) is provided as: 100,000.
  3. Finally, calculate the Profit-Sharing Ratio using the equation above: 

PSR = PE / TP * 100

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

PSR = 2,500 / 100,000 * 100 = 2.5 (%)


Example Problem #2: 

For this problem, the variables required are provided below:

profit share received by the employee ($) = 5,000

total profit of the company ($) = 150,000

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

PSR = PE / TP * 100 = ?