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Cost To Income Ratio Calculator

Work out cost to income ratio instantly with clear inputs, formula shown and shareable results.

About Cost To Income Ratio Calculator

Cost to income measures operating expenses against total operating income, the standard efficiency yardstick for a bank. What remains is pre-provision operating profit, the buffer available to absorb credit losses before capital is touched.

Formula

Cost to income

Ratio = operating expenses / (net interest income + other income)

Worked example

With the default values below, Cost To Income Ratio Calculator returns Cost To Income Ratio of 60.465%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Operating Expensesminimum 0
26,000,000
Net Interest Incomeminimum 0
31,000,000
Fee And Other Incomeminimum 0
12,000,000

Results

Cost To Income Ratio
60.465%
Total Operating Income
$43,000,000.00
Pre-Provision Operating Profit
$17,000,000.00
Efficiency Assessment
Average

Step by step

  1. 1Values used
  2. 2Cost to income
  3. 3Cost To Income Ratio= 60.465
  4. 4Total Operating Income= 43,000,000.00
  5. 5Pre-Provision Operating Profit= 17,000,000.00
  6. 6Efficiency Assessment= Average

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

What ratio is considered good?

Below 50% is strong for a universal bank; digital-only models target considerably lower.

Why does pre-provision profit matter?

It is the first line of defence against credit losses — a thin buffer means provisions quickly become capital losses.

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