Performance of Financial Institutions is dependent on various aspects that can affect their growth. Many of them are standardized aspects such as Portfolio At Risk, Provision Expense Ratio, Risk Coverage Ratio, Write Off Ratio. Along with these, we introduce a scientific cost distribution value that we name as the Expense Accrual Ratio (EAR). Along with the other parameters of measurement, EAR can be used to assess if the health of a financial institution. In this paper, we explain the role and functioning of EAR along with ways of calculation of it with formulas for the derivation. The effect of dependent parameters on EAR is explored and the graphs are explained. Further, its impact on performance is analyzed with data references. Comparison is done with the current interest rates of the institution to derive at a conclusion based on EAR. Along with other parameters of the measure this can be used as a powerful tool to adjust the functioning of the financial institution to avoid further losses. The necessity to balance EAR for unforeseen or natural calamities has been pointed out for future work.