How should business partners split profits?

Common methods: equal split (simplest), capital-weighted (by investment), time-weighted (by hours worked), or hybrid (balances capital + time). A 50/50 split is common for two equal partners, but rarely fair when contributions differ. Our calculator shows what each method produces.

How do you calculate equity split for a startup?

Consider: capital invested (40% weight), time commitment (30%), expertise/network (20%), and idea origination (10%). If one partner invests $100K and works 20hrs/week while another invests $0 and works 60hrs/week, a hybrid split might be 55/45. Our calculator balances these factors.

Should the partner who invested more money get more profit?

Not necessarily. A partner who invested $100K but works 10 hours/week may deserve less than a partner who invested $20K but works 60 hours/week as CEO. Our hybrid method weighs both capital and time to find a balance both partners can agree on.

What is the difference between equity and profit split?

Equity is ownership — what you'd get if the business sold. Profit split is how you divide ongoing earnings. They're often the same percentage but don't have to be. A partner with 40% equity might take 50% of profits if they run daily operations.

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Business Profit Split Calculator

Starting a business with partners? Determine a fair equity and profit split based on who invested capital, who works more hours, and who brings what skills. Choose from equal splits, capital-weighted, time-weighted, or hybrid methods that balance money and sweat equity. See each partner's fair share with a clear breakdown.

By Baljeet AulakhUpdated February 2026Reviewed for accuracy

Business partners can split profits equally, by capital invested, by hours worked, or using a hybrid method. A hybrid split balances money and sweat equity — if Partner A invested $100K working 10hrs/week and Partner B invested $20K working 50hrs/week, a hybrid split might be 45/55. Enter your details below.

Revenue & Expenses

Enter your business's monthly revenue and expenses.

Monthly Revenue ($)

Monthly Expenses ($)

Partners

Add each business partner with their capital contribution and weekly hours.

Capital Invested ($)

Hours / Week

Role

Capital Invested ($)

Hours / Week

Role

Split Method

Choose how profits should be divided between partners.

50% weight on capital invested, 50% weight on hours worked. Balances money and sweat equity.

How This Calculator Works

Enter Your Details

Fill in amounts, people, and preferences. Takes under 30 seconds.

Get Fair Results

See an instant breakdown with data-driven calculations and Fairness Scores.

Share & Settle

Copy a shareable link to discuss results with everyone involved.

Frequently Asked Questions

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