Enter the annual gross rent ($) and the annual sales ($) into the Occupancy Cost Calculator. The calculator will evaluate and display the Occupancy Cost, also known as the occupancy cost percentage. 

Occupancy Cost Formula

The following formula is used to calculate the Occupancy Cost. 

OC = GR / AS * 100
  • Where OC is the Occupancy Cost (%)
  • GR is the annual gross rent ($) 
  • AS is the annual sales ($) 

To calculate the occupancy cost percentage, divide the annual gross rent by the annual sales, then multiply by 100.

How to Calculate Occupancy Cost?

The following example problems outline how to calculate Occupancy Cost.

Example Problem #1:

  1. First, determine the annual gross rent ($). The annual gross rent ($) is given as 900.
  2. Next, determine the annual sales ($). The annual sales ($) is provided as 1800.
  3. Finally, calculate the Occupancy Cost using the equation above: 

OC = GR / AS * 100

The values given above are inserted into the equation below:

OC = 900 / 1800 * 100 = 50 (%)

Example Problem #2: 

The variables needed for this problem are provided below:

annual gross rent ($) = 3,000

annual sales ($) = 10,000

Entering these values and solving gives:

OC = 3000 / 10000 * 100 = 30 (%)