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

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## 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:**

- First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 4000.
- Next, determine the total revenue ($). For this problem, the total revenue ($) is given as 9000.
- 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