Enter the salaries, sales commission, advertising cost, rental expense, and utilities into the calculator to determine the operating expense.

## Operating Expense Formula

The following formula can be used to calculate the operating expense of a business.

OE = S + C + A + R + U

- Where OE is the operating expense
- S is the total salaries
- C is total commissions
- A is the advertising cost
- R is the rental or building cost
- U is utilities

## Operating Expense Definition

An operating expense is the total cost associated with the operational portion of the cost of a produced good or service. These operational expenses include the 5 things listed above.

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