Operating Expense Ratio Calculator
Calculate your operating expense ratio by dividing operating expenses by revenue to see how much of each sales dollar covers overheads.
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How this calculator works
This calculator divides total operating expenses, such as rent, admin and marketing, by revenue over the same period to show what percentage of revenue is consumed by overheads before profit.
Frequently asked questions
What is excluded from operating expenses here?
Cost of goods sold, interest and tax are excluded — this ratio focuses on overheads like rent, admin, marketing and insurance.
What is a healthy operating expense ratio?
It depends heavily on the business model, but a lower ratio generally means more revenue converts to profit before interest and tax.
How does this differ from net profit margin?
Operating expense ratio only looks at overheads relative to revenue, while net profit margin accounts for every cost including COGS, interest and tax.
Results are estimates only and are not financial, tax, legal or credit advice.