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Operating Expense Ratio

Free Operating Expense Ratio calculator with clear step-by-step results.

About Operating Expense Ratio

The operating expense ratio shows how much of every revenue dollar goes to running the business.

Formula

Formula

OER = operating expenses ÷ revenue × 100

Worked example

With the default values below, Operating Expense Ratio returns Operating Expense Ratio of 20.0%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Operating expensesminimum 0 $
30,000 $
Revenueminimum 0 $
150,000 $

Results

Operating Expense Ratio
20.0%
Cost per Dollar of Revenue
0.20
Remaining Margin
80.0%

Step by step

  1. 1Values used
  2. 2Formula
  3. 3Operating Expense Ratio= 20.0
  4. 4Cost per Dollar of Revenue= 0.20
  5. 5Remaining Margin= 80.0

Assumptions and limits

  • The result is derived only from the 2 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 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

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

Frequently Asked Questions

How does this calculator work?

The operating expense ratio shows how much of every revenue dollar goes to running the business.

Why does this matter?

Trends matter more than a single snapshot.

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Operating Expense Ratio – Calculate Operating Expense Ratio