Free financial calculator
Free expense-to-revenue ratio calculator — no signup
Enter net revenue and operating expenses for the same period. Get the percentage instantly, see the OPEX formula, and understand what the result does—and does not—mean.
Expense-to-revenue ratio
75.0%
Most revenue is being consumed by operating expenses. Compare the ratio with budget and prior periods.
Revenue less operating expenses
25,000
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Turn this result into a monthly reportFormula
Operating expenses ÷ Revenue × 100
Compare the ratio with budget, prior months, and the economics of your business. A lower ratio is not automatically better if spending supports profitable growth.
Continue the analysis
What to enter
Net revenue
Use revenue after discounts, returns, refunds, and other reductions when those fields are available. Keep the reporting period identical to the expense period.
Operating expenses
Enter the operating-cost categories included in your definition, such as payroll, rent, marketing, software, insurance, utilities, and administration. Apply the same definition every period.
Example: $45,000 of operating expenses divided by $75,000 of net revenue equals 60%. The calculation shows that the entered operating expenses consumed 60 cents of every revenue dollar.
How to interpret the result
| Result | What it indicates | What to check next |
|---|---|---|
| Above 100% | Entered expenses exceed revenue. | Cash impact, one-time costs, pricing, and the path to break-even. |
| 70% to 100% | Expenses consume most revenue. | Budget variance, gross margin, and whether spending is producing growth. |
| Below 70% | More revenue remains after entered expenses. | Whether all costs are complete and necessary investment is being maintained. |
These ranges are prompts for investigation, not industry benchmarks. For example, $75,000 of operating expenses divided by $100,000 of revenue produces a 75% ratio and leaves $25,000 before financing, tax, and exceptional items.
Frequently asked questions
What is the expense-to-revenue ratio?
It is operating expenses divided by revenue for the same period, multiplied by 100. It shows how much revenue is consumed by the operating expenses entered.
What is a good expense-to-revenue ratio?
There is no universal target. Compare the result with your approved budget, prior periods, and businesses with a similar model. A lower ratio can be positive, but underinvestment can also reduce future growth.
Should cost of goods sold be included?
Only if you define operating expenses to include it and use that definition consistently. For gross-margin analysis, calculate cost of goods sold separately from operating expenses.
This calculator provides general management information and does not determine profitability, tax treatment, or financial viability. Verify material decisions with a qualified adviser.