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. This calculator can evaluate any of the variables given the others are known.

## 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 ($) • TP is the total profit of the company ($)

To calculate a profit sharing ratio, divide the profit share received by the employee by the total company profit.

## 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