On this page is a bank *efficiency ratio calculator*. Enter the bank's non-interest expenses and total top-line revenue (or optionally, revenue net of loan-loss provisions) to compute its efficiency ratio.

## Efficiency Ratio Calculator

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## What is the efficiency ratio?

A bank's *efficiency ratio* is an at-a-glance measure which shows you how a bank is converting its non-investment costs into total revenue. Ideally, this number should be as low as possible, which would mean a bank is generating much more in revenue than its non-investment input costs.

### Efficiency Ratio Formula

The efficiency ratio formula is:

efficiency\ ratio=\frac{non-interest\ expenses}{revenue}

*Where:*

**Non-Interest Income**– Non-interest or non-investment revenue reported by the bank.**Revenue –**The top-line revenue of the company, or more accurately use the revenue net of any provisions for loan losses.

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