Partnership Ratio Calculator

Calculate Partnership Ratio



Formula

The formula to calculate the Partnership Ratio (R) is:

\[ R = A : B \]

Where:

Partnership Ratio Definition

A partnership ratio represents the proportion of ownership or profit-sharing between partners in a business based on their respective investments. It is an important aspect of partnership agreements and helps in determining how profits and losses are distributed among the partners.

Example Calculation

Let's consider an example:

Using the formula to calculate the Partnership Ratio:

\[ R = 300 : 500 = 3 : 5 \]

This demonstrates that with investments of $300 and $500, the partnership ratio would be 3:5.