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Operating Expense Ratio illustration

Real Estate · Income

Operating Expense Ratio

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Use operating expense ratio to compare operating efficiency across properties and time periods.

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Expense efficiency check

Operating Expenses / Gross Operating Income

Expenses consume 31.82% of gross operating income.

Check your inputs before you rely on the result — calculations are informational only and depend entirely on the numbers you enter. See our Terms.

Variables and units

  • Operating Expenses

    Annual operating expenses.

    currency

  • Gross Operating Income

    Annual income before operating expenses.

    currency

Common mistakes

  • Using debt service as an operating expense.
  • Comparing buildings with different expense pass-through structures.

Step-by-step example

Expense efficiency check

Expenses consume 31.82% of gross operating income.