Operating Expense Ratio Calculator
Use this free Operating Expense Ratio calculator to make better property management decisions. Enter your values below to get instant results.
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How to Use This Calculator
- 1 Enter total operating expenses
- 2 Enter gross operating income
- 3 Calculate OER percentage
- 4 Compare to 35-50% benchmarks
- 5 Identify cost reduction opportunities
Example Calculation
Analyzing 12-unit building efficiency
Inputs:
- Expenses: $48,000/year
- Income: $120,000/year
Result:
OER = 40%. Within healthy range for multifamily.
Important Considerations
- • New properties have lower maintenance costs
- • Self-managed shows artificially low OER
- • Included utilities raise OER by design
Frequently Asked Questions
35-45% typical for apartments. Single-family often 35-40%. Older buildings may hit 50-60%. Lower is better without cutting necessary maintenance.
Taxes, insurance, repairs, management, utilities (landlord-paid), landscaping. Exclude mortgage and CapEx.
Manage units, leases, and maintenance in one place
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