This calculator helps determine the general and administrative (G&A) rate based on your company's revenue and administrative expenses.
Learn how to use the General and Administrative Rate Calculator and its working principles
The General and Administrative (G&A) rate is a financial metric that shows the percentage of revenue spent on administrative expenses. It helps businesses understand how much they're spending on overhead compared to revenue.
If your company has a total revenue of $1,000,000 and administrative expenses of $100,000, the G&A rate would be calculated as follows:
G&A Rate = ($100,000 / $1,000,000) × 100% = 10%
This means that 10% of your revenue is spent on administrative expenses.
A higher G&A rate may indicate inefficiency, while a lower rate may suggest that the company is not spending enough on administration. The ideal G&A rate varies by industry and company size, so it's important to compare your results to industry benchmarks.