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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

Occupancy Cost Ratio

10.0%
AcceptableTypical range for small bay tenants. Monitor for revenue stability and consider lease terms carefully.

Monthly Occupancy Cost

$4,150.00

Annual Occupancy Cost

$49,800.00

Base Rent

84% of total

CAM / NNN

10% of total

Utilities

6% 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.

For informational and illustrative purposes only. Not financial, legal, tax, or investment advice.

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