Enter the operating expenses ($) and the total revenue ($) into the calculator to determine the Operational Efficiency. 

Operational Efficiency Formula

The following formula is used to calculate the Operational Efficiency. 

Eop = OE / TR

  • Where Eop is the Operational Efficiency
  • OE is the operating expenses ($) 
  • TR is the total revenue ($) 

How to Calculate Operational Efficiency?

The following two example problems outline how to calculate the Operational Efficiency.

Example Problem #1:

  1. First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 4000.
  2. Next, determine the total revenue ($). For this problem, the total revenue ($) is given as 9000.
  3. Finally, calculate the Operational Efficiency using the equation above: 

Eop = OE / TR

Inserting the values from above and solving the equation: 

Eop = 4000 / 9000 = .44


Example Problem #2: 

Using the same process as above, first define the variables required by the formula. In this case, these values are:

operating expenses ($) = 1200

total revenue ($) = 1600

Entering these values yields:

Eop = 1200 / 1600 = .75