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

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.

Please enter a valid gross income greater than zero.
Please enter valid operating expenses.

Your Operating Expense Ratio Results

Operating Expense Ratio

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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.