Sacrificing ratio is the ratio in which the existing partners forgo their shares in favour of the new partner. It is calculated by deducting each partner’s new share from his old share. It is usually the same as the old profit sharing ratio unless agreed otherwise.

It is calculated to distribute the premium for goodwill brought in by the new partner. The new partner compensates the old partners for their loss of share in the super profits of the firm. This amount brought in as premium is shared by the existing partners in the sacrificing ratio.