How to split cruise costs?

I'm guessing that's the 2nd adult price.

No, her sister would be the 4th guest since the way the price works is the first 2 pay "full" price whether they are adults or children. And the 3rd and 4th are charged the lower cost, again, whether they are adults or children.
 
I would base it on how the children would effect the experience. They are your kids and you buy into their effect on your vacation. If your sister is going to wander off on her own I would charge the 2CD adult fare. If she is going to provide support and company for you and the kids, I would lower the fare accordingly. If you are going to treat her like a babysitter I would not charge her at all.
 
My opinion:

If you and your kids are going on a cruise together no matter what, then she should pay 4th person fare.

If you are all deciding together “should we go on a cruise?” and either all of you are going or none are going, then she should pay 1/4.

Good luck!
 
No, her sister would be the 4th guest since the way the price works is the first 2 pay "full" price whether they are adults or children. And the 3rd and 4th are charged the lower cost, again, whether they are adults or children.
I looked and you’re right. I still think the difference in cost is fair, whatever that turns out to be.
 



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