Operating Expense Ratio Calculator
Calculate OER and benchmark operating expenses against effective gross income.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
$
%
$/yr
$/yr
$/yr
$/yr
$/yr
$/yr
Results
Operating Expense Ratio
38.89%
Net Operating Income
$167,200
Total Operating Expenses$106,400
Effective Gross Income$273,600
NOI Margin61.11%
Expense per Unit$5,320
Taxes as % of Expenses33.83%
Management as % of EGI7.31%
How to Use This Calculator
- Enter Gross Annual Income — total scheduled rent before vacancy.
- Set Vacancy Rate % and enter each expense category: Taxes, Insurance, Maintenance, Utilities, Management.
- Add Other Expenses (legal, accounting, landscaping) for a complete picture.
- Review Operating Expense Ratio (OER) — a healthy range is 35–50% for most residential properties.
- Check NOI and compare against debt service to evaluate overall profitability.
- Use OER trends over time to identify expense creep and management efficiency issues.
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