FREE Operating Expense Ratio Calculator (OER)
Use this calculator to determine your property's Operating Expense Ratio (OER), which measures the percentage of your gross income spent on operating expenses.
Operating Expense Ratio Calculator
Use this calculator to determine your property's Operating Expense Ratio (OER), which measures the percentage of your gross income spent on operating expenses. A lower OER typically indicates better operational efficiency.
Your Operating Expense Ratio Results
Operating Expense Ratio
What This Means
About Operating Expense Ratio
The Operating Expense Ratio (OER) is a key metric used by real estate investors to evaluate a property's operational efficiency. It represents the percentage of gross income that goes toward covering operating expenses.
How It's Calculated
OER = (Operating Expenses ÷ Gross Income) × 100%
What to Include in Operating Expenses
Operating expenses typically include:
- Property taxes
- Insurance
- Property management fees
- Maintenance and repairs
- Utilities (if paid by owner)
- Landscaping and snow removal
- Administrative costs
Note: Operating expenses do NOT include mortgage payments, capital expenditures, or depreciation.