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