Commercial real estate

Occupancy Cost Ratio Calculator

Compare total premises cost with business revenue. Replace every default with figures that apply to your property and location.

What this calculator estimates

Compare total premises cost with business revenue. It combines the inputs below to produce Occupancy cost ratio. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces 10.56%. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Annual base rent — sample input: 120000 currency units
• Annual additional rent and CAM — sample input: 50000 currency units
• Annual utilities and occupancy costs — sample input: 20000 currency units
• Annual business revenue — sample input: 1800000 currency units

How to interpret the result

Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.