Gain Ratio Calculator

Formula

The formula to calculate the Gain Ratio (GR) is:

\[ \text{GR} = \text{PS} \times \text{AR} \]

Where:

Gain Ratio (GR): The financial gain calculated by multiplying the retiring partner's share by the acquisition ratio.
Retiring Partner's Share (PS): The monetary share of the retiring partner.
Acquisition Ratio (AR): The ratio used to determine the gain from the retiring partner's share.

Let's say the retiring partner's share is $50,000 and the acquisition ratio is 1.2. Using the formula:

\[ \text{GR} = 50000 \times 1.2 \]

We get:

\[ \text{GR} = 60000 \]

So, the gain ratio is $60,000.