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.

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## 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:

- First, determine the profit share received by the employee ($).
- The profit share received by the employee ($) is given as: 2,500.

- Next, determine the total profit of the company ($).
- The total profit of the company ($) is provided as: 100,000.

- 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** = ?**