Formula - Expense Ratio | Propertylogy

Formula – Expense Ratio

By on June 8, 2018

E/I = R

E – Operating expense

I – Gross income from rental

R – Expense ratio

Sometimes also called the operating ratio, the expense ratio reveals the relationship between operating expenses and rental income.

This can be very useful when comparing properties to invest in.

Expressed as a percentage, it is important to note that mortgage interest expense is not taken into account when determining E because interest expense can vary.

You May Also Like...

hair1 eye1 abs1
Latest Singapore home loan rates
Hidden items that bring up mortgage costs
Hiring a competent agent
How to burn more calories in the office

Send this to a friend