# 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.

 Non-interest Expenses: Revenue: Efficiency Ratio: OR %

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