Expense Ratio Benchmark Calculator

Expense ratios benchmark. This calculator compares.

Gross revenue

Total operating expenses

Asset class (1=MF, 2=office, 3=retail, 4=industrial)

Expense ratio %

43.13%

Benchmark ratio %

43.00%

Gap to benchmark %

0.13%

How the math works

Ratio = OpEx / revenue. Gap = asset ratio − class benchmark.

$1.38M OpEx on $3.2M revenue = 43.1%. MF benchmark: 43%. Right on target. +3 points gap: flag for review. Larger portfolios can drive below by 3-6 points via scale efficiencies.

How to Use

Enter gross revenue.
Enter total operating expenses.
Enter asset class (1=MF, 2=office, 3=retail, 4=industrial).
Read ratio and benchmark gap.

Frequently Asked Questions

Typical ratios?

Multifamily: 38-48% of EGI. Office: 35-50%. Retail (anchored): 25-38%. Industrial NNN: 10-20% (tenants pay most). Class matters — Class A more expensive operations; Class C lower operations cost but higher collections loss.

What drives?

Payroll (highest variable). Taxes (climate, reassessment). Utilities (not submetered). Insurance (location risk). Management fee. Repairs/maintenance. Higher class properties: higher ratios on upscale services (landscaping, amenities, staff).

Benchmark sources?

NCREIF, IREM, public REIT filings. Geographic adjustments (high-tax states: +5-8%). Age (older buildings: higher R&M). Occupancy (higher occupancy: lower per-unit cost). Compare to 3-5 relevant comps for informed view.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.