# Efficiency Ratio Calculator

The efficiency ratio is a ratio which is specifically applied in organizations to check its utilization of liabilities and assets internally.

**We can calculate the efficiency ratio with the help of below formula:**## Calculating Efficiency Ratio

**Example:** Company ABC had $10,000 non-interest expenses for the year 2012 and its revenue is found to be $20,000. Calculate its efficiency ratio.

**Solution:**Given: Non-interest expenses: $10,000

Expenses: $20,000

We know the formula to calculate efficiency ratio is given by: non-interest expenses/revenue

Inputting the values into the formula = $10,000 / $20,000

= 0.5 x 100

= 50

Hence, the efficiency ratio of the company ABC is 50%In the below online efficiency ratio calculator, enter the non-interest expenses and revenue in the respective input boxes and click calculate to find the efficiency ratio.

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