How To Calculate Insurance Expense. Some of the factors that influence the cost of your home insurance policy include: In layman’s terms, the formula to get the expense ratio is dividing the expenses of the insurance company by net premium earned.
The company will record the payment with a debit of $12,000 to prepaid insurance and a credit of $12,000 to cash. In this case, the patient would owe $15. To calculate your net financial expenses, add your average monthly variable expenses to your monthly fixed expenses.