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.

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## 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:

- First, determine the annual gross rent ($). The annual gross rent ($) is given as 900.
- Next, determine the annual sales ($). The annual sales ($) is provided as 1800.
- 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 (%)