All Tools

analyzer

Occupancy Cost Ratio Calculator

Calculate a tenant's total occupancy cost (rent + CAM + utilities) as a percentage of revenue to assess affordability risk.

Occupancy Costs
Enter monthly costs and tenant revenue

Include taxes, insurance, and CAM pass-throughs

Electric, gas, water, internet

Gross revenue from tax returns or financials

Affordability Analysis
Occupancy cost ratio assessment
10.0%
Acceptable
Occupancy Cost Ratio

Typical range for small bay tenants. Monitor for revenue stability and consider lease terms carefully.

Monthly Occupancy Cost$4,150
Annual Occupancy Cost$49,800
Base Rent84% of total
CAM / NNN10% of total
Utilities6% of total

Occupancy Cost Risk Bands

  • Under 8%Healthy
  • 8% – 12%Acceptable
  • 12% – 15%Stretched
  • Over 15%High Risk

Occupancy cost ratio is one factor in tenant underwriting. Always verify revenue with tax returns or audited financials.

Simple napkin-math for illustration only—not financial, legal, or investment advice. Do your own due diligence.