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 ($) 
  • TR is the total revenue ($) 

To calculate the operational efficiency, divide the operating expenses by 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