Rent as a share of sales.

Worked example

A shop pays $6,500 base rent and $1,800 of other occupancy costs, so $8,300 a month ($99,600 a year), on sales of $52,000. Rent alone is 12.50% of sales and total occupancy is 15.96%. If the owner wants occupancy at 12% of sales, the most the shop can afford is $6,240 a month, which is $2,060 less than it pays now. To make today's $8,300 fit a 12% target, sales would need to reach $69,166.67 a month.

How it works

Rent % of sales = monthly rent / monthly sales x 100, and occupancy cost % adds the other costs of occupying the space that you enter: common-area charges, property tax, insurance, utilities. Leave the extras at 0 if you only want base rent.

Affordable occupancy = sales x target %. Sales needed = occupancy cost / target %. Both use the target you type; the tool contains no recommended percentage, since what a store can carry depends on its gross margin and other costs.

Use sales from the same months as the rent. For a percentage-rent lease, where part of the rent depends on sales, this simple ratio does not model the breakpoint; see the commercial lease tool for lease mechanics.

Sources and basis (checked 2026-10-08): Arithmetic on your inputs only. Occupancy ratios are the rent and occupancy figures you enter divided by the sales you enter. No benchmark percentage is quoted.

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FAQ

What percentage of sales should rent be?

There is no single rule that fits every store. It depends on your gross margin and other costs, so set a target that still leaves a profit and test it here.

What is included in occupancy cost?

Base rent plus the other recurring costs of the premises, such as common-area maintenance, property tax, insurance and utilities. The calculator lets you enter them separately.

Should I use monthly or yearly figures?

Either, as long as rent and sales cover the same period. Monthly figures are used here because rent is usually quoted monthly.