Occupancy Cost Ratio Calculator (Retail)
Tenant health check: total occupancy cost as a share of sales — the ratio that predicts retail defaults by category.
Formula
Landlords underwrite tenants' sales because OCR predicts defaults better than credit scores: a restaurant above 12-13% occupancy cost is dying regardless of what the lease says. Health ratios also set realistic renewal rents — you can't collect what sales can't support.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need occupancy cost ratio calculator results fast? Analysts, founders, traders and finance professionals use the Occupancy Cost Ratio Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Occupancy Cost Ratio Calculator (Retail)
Tenant health check: total occupancy cost as a share of sales — the ratio that predicts retail defaults by category. Landlords underwrite tenants' sales because OCR predicts defaults better than credit scores: a restaurant above 12-13% occupancy cost is dying regardless of what the lease says. Health ratios also set realistic renewal rents — you can't collect what sales can't support. The governing relationship is OCR = (base + NNN + percentage rent) / gross sales. The Occupancy Cost Ratio Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Occupancy Cost Ratio Calculator (Retail)
- 1Enter Annual base rent (currency), NNN charges + CAM (currency), Percentage rent paid (currency), Tenant annual sales (currency), Category benchmark into the Occupancy Cost Ratio Calculator.
- 2The result is computed automatically using OCR = (base + NNN + percentage rent) / gross sales — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Occupancy Cost Ratio Calculator (Retail)?
- ✓Computes occupancy cost ratio calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Occupancy Cost Ratio Calculator?+
Occupancy Cost Ratio Calculator uses OCR = (base + NNN + percentage rent) / gross sales. Landlords underwrite tenants' sales because OCR predicts defaults better than credit scores: a restaurant above 12-13% occupancy cost is dying regardless of what the lease says. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Occupancy Cost Ratio Calculator need?+
Enter Annual base rent (currency), NNN charges + CAM (currency), Percentage rent paid (currency), Tenant annual sales (currency), Category benchmark and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Occupancy Cost Ratio Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Occupancy Cost Ratio Calculator?+
Health ratios also set realistic renewal rents — you can't collect what sales can't support.
What is the Occupancy Cost Ratio Calculator based on?+
The method follows authoritative sources: ICSC occupancy-cost benchmarks by category. The formula and references are shown on the page so you can verify and cite the result.
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