Efficiency Ratio Calculator
Measure your organization's operational efficiency with our comprehensive financial ratio calculator
Financial Inputs
Includes salaries, rent, utilities, etc.
Your Efficiency Results
Basic Efficiency Ratio
--
Expenses ÷ Revenue
Banking Standard Ratio
--
Expenses ÷ (Net Interest + Non-Interest Income)
Operational Efficiency
--
Lower is better
Select your industry to compare your efficiency ratio with benchmarks.
Efficiency Analysis
Your detailed efficiency analysis will appear here.
📊 Industry Benchmark Ratios
| Industry | Excellent | Good | Average | Needs Improvement |
|---|---|---|---|---|
| Banking | <50% | 50-60% | 60-70% | >70% |
| Credit Unions | <55% | 55-65% | 65-75% | >75% |
| Insurance | <60% | 60-70% | 70-80% | >80% |
| Retail | <65% | 65-75% | 75-85% | >85% |
| Manufacturing | <70% | 70-80% | 80-90% | >90% |
| Healthcare | <75% | 75-85% | 85-95% | >95% |
| Technology | <40% | 40-50% | 50-60% | >60% |
Note: These benchmarks vary by company size and market conditions.
📈 Efficiency Improvement Tips
Process Automation
Implement software solutions to automate repetitive tasks and reduce labor costs.
Data Analytics
Use analytics to identify inefficiencies and optimize resource allocation.
Lean Methodology
Apply lean principles to eliminate waste in your operational processes.
Vendor Negotiation
Regularly review and negotiate contracts with suppliers to reduce costs.
Remote Work
Consider hybrid models to reduce office space and utility expenses.
Inventory Management
Optimize inventory levels to reduce carrying costs without impacting service.
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Note: This calculator provides estimates based on standard efficiency ratio formulas. Actual financial performance should be evaluated by a qualified professional considering all relevant factors.