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?


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%