Operating Expense Calculator

Calculate Operating Expense









Formula

The formula to calculate the operating expense is:

\[ \text{OE} = S + C + A + R + U \]

Where:

What is Operating Expense?

Operating expense refers to the total cost associated with the day-to-day operations of a business. These costs include salaries, commissions, advertising expenses, rental or building costs, and utilities. Operating expenses are crucial for determining a business's profitability and operational efficiency.

Example Calculation

Let's consider an example:

Using the formula to calculate the operating expense:

\[ \text{OE} = 50,000 + 10,000 + 5,000 + 20,000 + 3,000 = 88,000 \text{ dollars} \]

This means that the total operating expense for this scenario is $88,000.