Opex Ratio Calculator

Opex ratio measures cost efficiency. This calculator computes and classifies the ratio.

Gross revenue

Total opex

Asset class

Opex ratio %

40.00%

Market midpoint %

40.00%

Classification

Market-typical

How the math works

Ratio = opex ÷ gross revenue × 100. Benchmark against asset-class norms.

Rising ratio without corresponding service-level upgrade is a margin problem. Classify each dollar as controllable vs non-controllable. Attack controllable overages first; lobby authorities on non-controllable.

How to Use

Enter gross operating revenue.
Enter total operating expenses.
Select asset class.
Read opex ratio.

Frequently Asked Questions

Healthy ratio?

Multifamily 35-45%. Office 35-50%. Industrial 10-20%. Retail 25-40%. Triple-net deals 5-15% (most costs borne by tenant). Asset-class context is critical.

Ratio trends?

Rising ratio without rent growth = margin compression. Falling ratio = efficiency gain or rent growth outpacing cost. Watch 3-5 year trend, not single-year snapshot.

Comparisons?

Compare similar age, class, and location assets. Older Class B in high-tax market will show higher ratio than new Class A in low-tax market, even if both are well-managed.

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.