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

- Operating Cycle Calculator
- Degree of Operating Leverage Calculator (+ Formula)
- NOPAT Calculator
- Operating Margin Calculator

## 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.

## Operating Expense Example

How to calculate operating expense?

**First, determine the total salaries.**Calculate the total cost of all salaries.

**Next, determine the total commissions.**Calculate the total commissions on all sales.

**Next, determine the advertising cost.**Calculate the cost of advertising associated with the product.

**Next, determine the building cost and utilities.**Calculate the cost to own or rent the building the company is in as well as the utilities used.

**Finally, calculate the operating expense.**Calculate the operating expense using the equation above.

## FAQ

**What is operating expense?**

Operating expense is a measure of all expenses that are not direct labor or direct material costs that go into a product.

## Related Terms

operating expense calculator |

operating expense formula |

how to calculate operating expense |

operating ratio formula |

operating cost formula |

calculate operating income |

how to find operating expenses |

operating revenue formula |

how to calculate operating cost |

formula for operating income |

how to calculate operating expenses on income statement |

total operating expenses formula |

how to calculate operating cost business |

operating ratio interpretation |

calculating net operating income |

how to calculate total operating expenses |

total operating income formula |

operating cost calculation |

how do you calculate operating expenses |

total operating cost formula |

how to find total operating expenses |

how to calculate operating expenses formula |

how to find operating cost |

how to calculate net profit before interest and tax |

how to find operating expenses on income statement |

how to find operating expenses formula |

budgeted operating income formula |

equation for operating income |

operating expenses equation |

average daily operating costs formula |

how to compute operating expense |

gross operating income formula |

formula to calculate operating income |

find operating income |

how to determine operating expenses |

cash operating expenses formula |

vehicle operating cost formula |

calculate total operating expenses |

how do you find net operating income |

operating expenses calculation formula |

operating expenses to sales ratio formula |

how to work out operating expenses |

how to calculate cash payments for operating expenses |

how to calculate total operating cost |

net operating expenses formula |

operating expense margin formula |

how to figure out operating expenses |

operating income formula cost accounting |

non operating expenses formula |

operating expense ratio interpretation |

how to calculate average daily operating costs |

the formula for calculating operating expenses percentage is |

opex gross up calculation |

calculate operating revenue |

adjusted operating income formula |

how to calculate gross up operating expenses |

operating expenses formula accounting |

how to calculate operating expenses in accounting |