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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