Office Rent Affordability Calculator
Estimate how much office rent your business may be able to afford based on revenue, target occupancy cost, existing fixed costs and headcount.
Overview
The Office Rent Affordability Calculator helps you estimate a practical monthly office rent budget using your monthly revenue, target rent percentage, other fixed costs, desired profit margin and team size. It is useful when comparing office spaces or checking whether a lease fits your business finances.
How it works
The calculator compares two affordability limits. First, it calculates a revenue-based rent cap using your chosen percentage of monthly revenue. Second, it calculates a cash-flow-based rent cap by subtracting fixed costs, office running charges and your desired profit from revenue. The recommended rent is the lower of these two figures, so the result stays aligned with both your occupancy cost target and your profit goal.
How to use this calculator
- 1Enter your average monthly revenue.
- 2Set the percentage of revenue you want office rent to use.
- 3Add your other monthly fixed costs excluding rent.
- 4Enter your desired profit margin.
- 5Add your team size and estimated monthly utilities or service charges.
- 6Review the recommended monthly and annual office rent budget.
Example Calculation
Monthly revenue
$50,000
Target rent as % of revenue
10%
Other monthly fixed costs
$20,000
Desired profit margin
15%
Team size
12
Monthly utilities and service charges
$1,500
Recommended monthly rent
$5,000
With monthly revenue of $50,000, a 10% rent target, $20,000 in other fixed costs, a 15% profit goal, 12 team members and $1,500 in office charges, the recommended monthly rent is about $5,000. That is around $60,000 per year and roughly $417 per employee per month.
Frequently asked questions
What does this office rent calculator estimate?
It estimates a monthly office rent budget based on your revenue, fixed costs, desired profit margin and target rent ratio.
Why does the calculator use both revenue and cash flow?
A rent level may look fine as a percentage of revenue but still be too high once other costs are included. Using both checks gives a more practical estimate.
Should utilities and service charges be included in rent?
This calculator treats them separately so you can see a clearer base rent budget. In practice, you should review the full occupancy cost of any property.
Can I use this for coworking space or serviced offices?
Yes. You can use the monthly desk or suite cost as rent and add any separate service charges to the utilities and charges field.
Does this include lease deposits or fit-out costs?
No. The calculator focuses on ongoing monthly affordability and does not include deposits, legal fees, furniture, fit-out or moving costs.
What is a good rent-to-revenue percentage?
It depends on your industry, margins and growth stage. Many businesses set a target that keeps occupancy costs manageable while protecting cash flow and profit.
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Assumptions and warnings
Assumptions
- Results are estimates based on the revenue, cost and margin figures you enter.
- Office utilities and service charges are treated separately from base rent.
- The calculator assumes your monthly revenue and costs are reasonably stable.
- Taxes, financing costs, fit-out costs, deposits and one-off moving expenses are not included.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Review lease terms, service charges, taxes and one-off setup costs before committing to a property.