## What is Profit Sharing Ratios?

In partnerships, profit sharing ratios determine how profits (and sometimes losses) are distributed among partners based on their investment or agreement. This calculator helps you calculate the profit-sharing ratio between two partners.

### How to Use this Profit Sharing Ratio Calculator

Follow these steps to calculate your profit-sharing ratio:

**Enter Partner A's Investment:**Input the amount invested by Partner A.**Enter Partner B's Investment:**Input the amount invested by Partner B.**Calculate:**Click on the "Calculate Profit Sharing Ratio" button to see each partner's share of the profits.

### Formulas Used in this Calculator

The formulas used in this calculator are as follows:

**Partner A's Share (%) = (Partner A's Investment / Total Investment) × 100**

**Partner B's Share (%) = (Partner B's Investment / Total Investment) × 100**

- Related
- Business Profit Calculator
- Average Profit Calculator
- Desired Profit Calculator
- Company Profit Calculator

### Why Use a Profit Sharing Ratio Calculator?

Using a Profit Sharing Ratio Calculator helps you ensure a fair distribution of profits based on each partner's contribution. It is an essential tool for partnerships to maintain transparency and trust.

For more insights into profit sharing ratios, check out these resources: