What Are Operating Expenses?
Operating expenses (OpEx) are the ongoing costs of running a business: rent, salaries, utilities, insurance, marketing, and supplies. Unlike COGS (cost of goods sold), OpEx are not directly tied to production.
Operating Expense Calculator
Calculate business operating costs
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Business overview
We'll benchmark your operating expense ratio against typical ranges for this industry.
$
Total revenue for the selected period.
Switch to quarterly or annual view if you plan longer budgets.
Expense entries
Enter budgeted vs. actual spend for each operating expense category. The tool highlights overspending and fixed vs. variable mix.
| Category | Budgeted (per month) | Actual (per month) | Expense type | Variance | % of total | Notes |
|---|---|---|---|---|---|---|
Rent & Occupancy Rent, lease, property taxes, building insurance. | $0 (0.0%) | 13.5% | ||||
Salaries & Wages Base salaries, hourly wages, payroll taxes. | $0 (0.0%) | 40.4% | ||||
Payroll Taxes & Benefits Employer payroll taxes, insurance, retirement contribution. | $0 (0.0%) | 8.1% | ||||
Sales Commissions Sales commissions, performance bonuses. | $0 (0.0%) | 6.7% | ||||
Utilities Electricity, gas, water, internet, phone. | $0 (0.0%) | 2.2% | ||||
Insurance General liability, professional, property, workers’ comp. | $0 (0.0%) | 3.2% | ||||
Marketing & Advertising Ads, SEO, content, events, promotions. | $0 (0.0%) | 8.1% | ||||
Office Supplies & Materials Office supplies, postage, printing, packaging (not COGS). | $0 (0.0%) | 1.3% | ||||
Software & Technology SaaS subscriptions, CRM, hosting, licenses. | $0 (0.0%) | 2.7% | ||||
Professional Services Accounting, legal, consulting, bookkeeping. | $0 (0.0%) | 2.7% | ||||
Bank & Merchant Fees Credit card processing, bank fees, POS fees. | $0 (0.0%) | 4.0% | ||||
Repairs & Maintenance Equipment repairs, janitorial, maintenance. | $0 (0.0%) | 1.6% | ||||
Transportation & Vehicle Mileage, gas, vehicle lease, parking. | $0 (0.0%) | 2.2% | ||||
Travel & Meals Business travel, lodging, meals, entertainment. | $0 (0.0%) | 1.3% | ||||
Licenses & Permits Business licenses, permits, memberships, dues. | $0 (0.0%) | 0.5% | ||||
Other Operating Expenses Miscellaneous costs not listed above. | $0 (0.0%) | 1.3% | ||||
| Totals | $37,100 | $37,100 | $0 (0.0%) | 100% |
Expense ratio & diagnostics
See how your operating expenses compare to revenue and peer benchmarks.
Operating expense ratio
74.2%
HighTotal actual expenses
$37,100
Total budgeted expenses
$37,100
Variance
$0 (0.0%)
Benchmark comparison
Operating expense ratio is above typical industry ranges. Review your largest categories and fixed costs to protect margins.
Fixed vs. variable mix
Fixed: 60.4% • Variable: 26.7% • Semi-variable: 12.9%
Top cost drivers
Salaries & Wages: $15,000 (40.4%) • Rent & Occupancy: $5,000 (13.5%) • Payroll Taxes & Benefits: $3,000 (8.1%)
Budget vs. actual variance
Highlight overspending quickly by tracking variance for each category.
Insights & action items
Warnings
- Operating expense ratio 74.2% exceeds the typical range 40% - 55% for Professional Services.
Suggested actions
- Review fixed costs (rent, salaries, software) for downsizing or renegotiation opportunities.
- Variable expenses dominate the cost structure—consider negotiating volume discounts or long-term vendor contracts.
- Top three expense categories account for 62.0% of total OpEx. Focus on Salaries & Wages, Rent & Occupancy, Payroll Taxes & Benefits for the quickest savings.
Calculate business operating costs
Enter your monthly operating expenses to calculate totals and ratios.
Operating Expense Ratio
Operating Expense Ratio = Operating Expenses ÷ Revenue. Lower is better. Retail: 20-30%, SaaS: 40-60%, Professional services: 50-70%. Track this metric monthly to control costs.
Frequently Asked Questions
Common questions about the Operating Expense Calculator
It varies by industry. Retail: 20-30%, SaaS: 40-60%, Consulting: 50-70%, Restaurants: 60-70%. Lower ratios indicate better efficiency, but compare against your industry average.
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⚠️ Important Disclaimer
This Operating Expense Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.