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Operating expenses,within the business context means those expenses that are directly related to operating the business.For example

  • a business needs to pay its staff wages or salaries
  • a business uses water and electricity and has to pay for these
  • a business uses stationery and has to purchase these
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15y ago

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Net Operating Expenses (NOE) are calculated by subtracting total operating income from total operating expenses. First, identify all operating income sources, such as rental income or service fees. Then, list all operating expenses, including property management, maintenance, utilities, and taxes. Finally, use the formula: NOE = Total Operating Income - Total Operating Expenses to arrive at the net figure.


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