Split business profit by ownership stake. See each partner's share.
A profit share calculator determines each owner's payout from business profit, based on ownership percentage and how much profit is retained in the business.
After a business earns a profit, owners decide how much to reinvest (retain) and how much to distribute. Each owner's payout is their ownership percentage of the distributed amount. Retaining profit funds growth and reserves; distributing it rewards owners. The calculator splits it cleanly so partners can see their shares.
Real distributions can be more complex, partnership agreements may specify special allocations, preferred returns, or different profit and ownership splits, and distributions have tax consequences that depend on the entity type. Use this for a straightforward proportional split, and consult an accountant for the tax treatment and any special terms in your agreement.
Usually in proportion to ownership: each owner receives their ownership percentage of the profit distributed after any amount retained in the business.
Keeping some profit in the business rather than distributing it, to fund growth, reserves, or future investment instead of paying it out.
Yes, and the treatment depends on the entity type (LLC, S-corp, partnership, C-corp). Consult an accountant for your situation.
See the exact formula and a worked example on our methodology page.