Free Operating Expense Ratio Calculator
Measure the proportion of gross income consumed by operating expenses to gauge property management efficiency.
USD
USD
Operating Expense Ratio
40.0%
Net Operating Income$33,000
NOI Ratio60.0%
Operating Expense Ratio vs Total Operating Expenses
Operating Expense Ratio
The OER shows what percentage of a property's gross income is spent on operating costs. A lower OER indicates more efficient property management.
Formula
OER = Operating Expenses / Effective Gross Income x 100
Benchmarks
Example Calculation
A property has $22,000 in operating expenses on $55,000 effective gross income.
- 01OER = $22,000 / $55,000 x 100 = 40.0%
- 02NOI = $55,000 - $22,000 = $33,000
- 03NOI ratio = $33,000 / $55,000 x 100 = 60.0%
- 04A 40% OER means 40 cents of every income dollar goes to expenses