Retail Rent Percentage Calculator
Calculate your rent-to-revenue ratio to determine if your retail or restaurant space is priced right for your business.
Rent-to-Revenue Assessment
Rent-to-revenue ratio is one of the most important metrics for retail and restaurant businesses.
Rent Percentage = (Monthly Rent / Monthly Revenue) × 100
Healthy benchmarks by business type:
- Retail (general): 5-10%
- Restaurant: 6-10%
- Coffee shop/cafe: 5-8%
- Salon/spa: 6-12%
- Boutique/specialty: 8-15%
Total occupancy cost (rent + utilities + insurance + maintenance) should ideally stay below 15% of revenue.
Warning signs:
- Over 10% for most retail: Squeezing profits
- Over 15%: Serious risk to viability
- Over 20%: Likely unsustainable
Options if rent is too high:
- Negotiate a lower base rent with percentage rent
- Sublease unused space
- Increase revenue per square foot
- Consider relocating