Portfolio Expense Ratio Calculator

Expense ratio reveals operating efficiency. This calculator benchmarks against sector norms.

Total revenue

Controllable opex

Non-controllable opex

Benchmark ratio

Expense ratio

43.53%

Gap vs benchmark (pts)

1.53

$ above benchmark

$104,000

How the math works

Ratio = total opex ÷ revenue. Gap vs benchmark in pts; $ above benchmark = revenue × gap.

A portfolio running 300 bps above benchmark is leaving $3 of NOI per $100 revenue on the table. At a 6% cap rate, that's ~$50 of value per $100 revenue — more than many value-add repositioning plays generate in their first two years.

How to Use

Enter total revenue.
Enter controllable opex.
Enter non-controllable opex (tax, insurance, utilities).
Enter benchmark ratio %.
Read expense ratio and vs-benchmark gap.

Frequently Asked Questions

Benchmarks?

MF garden: 35-45%. MF high-rise: 40-50%. Office CBD: 38-48%. Office suburban: 32-42%. Retail strip: 22-32%. Industrial: 18-28%. Self-storage: 30-40%. Always check regional subset; national averages hide cost of labor and tax variation.

Controllable vs non?

Controllable: payroll, repairs, marketing, turnover. Non: property tax, insurance, utilities, HOA/CAM. Benchmark controllable first (that's where management skill lives); non-controllable tied to market conditions.

Common traps?

Including capex in opex (inflates ratio). Excluding property management fee (under-states). Mixed year vintages (adjust for acquisition/dispo mid-year). Clean numbers beat fuzzy benchmarks every time.

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.