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Partnership Calculator

Share a business profit between partners in proportion to their capital and the time it was invested.

About the Partnership Calculator

In a partnership, profit is divided in the ratio of each partner's capital multiplied by the time it was invested. If everyone invested for the same time, that's just the ratio of the capitals.

It's the same idea as splitting an amount in a ratio.

The formula

Share = profit × (capital × time) ÷ Σ(capital × time)

Worked example

₹50,000 for 12 months, ₹30,000 for 12 months, ₹20,000 for 6 months; profit ₹44,000

  1. Ratio 600,000 : 360,000 : 120,000 = 5 : 3 : 1
  2. Shares ₹24,444.44, ₹14,666.67, ₹4,888.89

Questions people ask

How is profit shared when partners invest for different lengths of time?

Multiply each partner's capital by the months it was invested, then share the profit in the ratio of those products.

Does a working partner's salary come out first?

Yes, when the partnership agreement says so: deduct the salary from the profit, then share what's left in the capital ratio.