Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Program expense ratio
78.0%
Admin (M&G) ratio
14.0%
Fundraising expense ratio
8.0%
Total overhead ratio
22.0%
Total expenses
$1,000,000
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How to use this
- 1Enter program services expenses ($).
- 2Enter management & general expenses ($).
- 3Enter fundraising expenses ($).
- 4Read your program expense ratio on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Watchdogs like Charity Navigator historically rewarded organizations spending 75%+ of expenses on programs, though the sector has pushed back on treating that number as gospel since underinvesting in infrastructure can hurt long-term impact. Still, funders and boards ask for it, so you need it calculated correctly using your functional expense allocation: program services, management and general, and fundraising. This tool takes those three buckets from your Form 990 or audited financials and produces the program ratio, admin ratio, and fundraising efficiency ratio side by side, along with a plain read on where you land relative to common benchmarks so you can explain the number instead of just reporting it.
Worked example
Using the values the calculator loads with:
Inputs
- Program services expenses: 780000 $
- Management & general expenses: 140000 $
- Fundraising expenses: 80000 $
Results
- Program expense ratio: 78.0%
- Admin (M&G) ratio: 14.0%
- Fundraising expense ratio: 8.0%
- Total overhead ratio: 22.0%
- Total expenses: $1,000,000
What each field means
Inputs
- Program services expenses ($)
- The program services expenses used in the calculation, measured in $. Starts at 780000 $ so you have a working example on load.
- Management & general expenses ($)
- The management & general expenses used in the calculation, measured in $. Starts at 140000 $ so you have a working example on load.
- Fundraising expenses ($)
- The fundraising expenses used in the calculation, measured in $. Starts at 80000 $ so you have a working example on load.
Results
- Program expense ratio
- Returned as a percentage and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Admin (M&G) ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Fundraising expense ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total overhead ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total expenses
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What ratio do watchdogs consider healthy?
Charity Navigator's older scoring rewarded 75% or more to program services, with anything under 65% losing points. Newer methodologies weight this less heavily, but boards and major donors still ask for it, so know your number even if you also push back on treating it as the whole picture.
Isn't the overhead ratio a flawed measure?
Yes, and the sector broadly agrees. The 'overhead myth' argument, backed by GuideStar, BBB Wise Giving Alliance, and GiveWell, is that starving admin and fundraising capacity actually reduces long-term impact. Use this ratio as one data point, not the only measure of effectiveness.
How should shared staff time be allocated?
Time studies or reasonable allocation methodologies split a program director's salary between program and admin based on actual time spent, not guesswork. The IRS expects a documented, consistent methodology on your Form 990, and auditors will ask for it.
Does grant-funded overhead change this ratio?
It can. If a grant explicitly pays for indirect/admin costs, that indirect recovery should still land in the M&G functional category on your books, which raises your admin ratio numerically even though the grant is fully covering it, so don't panic if the ratio ticks up after landing a well-funded grant.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Program vs Admin Expense Ratio Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/program-admin-ratio
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/program-admin-ratio" target="_blank" rel="noopener">Program vs Admin Expense Ratio Calculator — RevenueLab</a> (2026).</p>
Source: [Program vs Admin Expense Ratio Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/program-admin-ratio) (2026).