In partnership problems, profit is shared in proportion to how much each partner invested and for how long. Enter each partner's investment and months to see the ratio and each share of the profit.
Enter each partner's investment.
Enter the months each one invested.
Enter the total profit and read the shares.
Share: Shareᵢ = Profit × (Cᵢ × Tᵢ) ÷ Σ(C × T)
When two or more people invest in a business, profit is shared in proportion to capital multiplied by the time it was invested. This calculator takes each partner's investment and the months it stayed in the business, finds the capital-time products, and splits the total profit in that ratio.
Partnership questions are a standard aptitude topic in SSC, banking and railway exams. The same logic applies in real small businesses in India, such as a shop started by friends or relatives who put in money at different times, when the partnership deed does not fix another ratio.
Enter investments and months in the same order, and the total profit to be divided.
1. List each partner's capital C and the number of months T it was invested.
2. Compute C × T for each partner; this is their effective capital in rupee-months.
3. Add all the products to get the total.
4. Write the profit-sharing ratio as the list of products, simplified by any common factor.
5. Each partner's share = total profit × (C × T) ÷ total of products.
6. If a working partner gets a salary or commission first, subtract it from profit before splitting.
Money in a business for 12 months does twice the work of the same money for 6 months. The product capital × time measures how much capital the business had the use of, in rupee-months. ₹1,50,000 for 12 months and ₹3,00,000 for 6 months both give 18,00,000 rupee-months, so they earn equal shares. When all partners invest for the same period, time cancels and the ratio is just the ratio of capitals.
If a partner adds or withdraws money partway, split their investment into periods. Someone who invests ₹2,00,000 for 4 months and then ₹3,00,000 for 8 months has 8,00,000 + 24,00,000 = 32,00,000 rupee-months. The rule stays the same: add up capital × time for each period. This keeps the sharing fair to partners whose money was in the business longer.
Aptitude questions assume profit follows capital × time. In real partnerships in India the partnership deed decides the ratio, and it may reflect effort, skill or agreed shares rather than capital alone. Where there is no agreement on this point, partnership law generally provides for equal sharing, not capital-based sharing. For real disputes, the deed and a qualified professional should be consulted. The calculator applies the capital-time convention used in exams and many informal arrangements.
Anil and Farhan started a printing shop in Nagpur with ₹2,00,000 and ₹1,50,000 for the full year, and Gita joined six months later with ₹2,50,000. The year's profit is ₹1,84,000.
Capital × time for each partner: P1: 200000 × 12 = 24,00,000 P2: 150000 × 12 = 18,00,000 P3: 250000 × 6 = 15,00,000
Profit-sharing ratio: 24,00,000 : 18,00,000 : 15,00,000
Each share = profit × part ÷ total: P1: 184000 × 24,00,000 ÷ 57,00,000 = ₹77,473.68 P2: 184000 × 18,00,000 ÷ 57,00,000 = ₹58,105.26 P3: 184000 × 15,00,000 ÷ 57,00,000 = ₹48,421.05
Answer: Profit shares P1: ₹77,473.68, P2: ₹58,105.26, P3: ₹48,421.05; Partners 3
Sharing profit in the ratio of capital alone when partners invested for different periods.
Counting months from the wrong date when someone joins partway.
Forgetting to deduct a working partner's salary before dividing the remainder.
Assuming the capital-time rule overrides a written partnership deed.
Solving partnership questions in aptitude exams.
Dividing profit in informal family or friends' businesses.
Checking shares proposed by an accountant against capital contributions.
Teaching proportion and ratio with a practical example.
What about a working partner's salary?
Deduct the salary from profit first, then split the rest by capital × time.
If all invest for the same time?
The ratio is simply the ratio of investments.