Enter the total expenses and sales for the month into the calculator to determine the monthly expense ratio.

## Monthly Expense Ratio Formula

The following equation is used to calculate the Monthly Expense Ratio.

MER = TE / NS * 100

• Where MER is the monthly expense ratio (%)
• TE is the total expenses in a month ($) • NS is the net sales in a month ($)

To calculate the monthly expense ratio, divide the total expenses by the net sales for a one-month period. Multiplying this result by 100 yields the ratio as a percentage.

## What is a Monthly Expense Ratio?

Definition:

A monthly expense ratio is defined as the ratio of monthly expenses to monthly net sales. This ratio is often calculated as a percentage.

## How to Calculate Monthly Expense Ratio?

Example Problem:

The following example outlines the steps and information needed to calculate Monthly Expense Ratio.

First, determine the total expenses for a month. In this example, the total expenses for a month were found to be $1,000.00. Next, determine the net sales for the same period. In this case, the net sales over the same time period were calculated to be$9,000.00.

Finally, calculate the monthly expense ratio using the formula above:

MER = TE / NS * 100

MER = 1000 / 9000 * 100

MER = 11.11%