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Warehouse Rent Per Pallet Calculator

Work out warehouse rent per pallet instantly with clear inputs, formula shown and shareable results.

About Warehouse Rent Per Pallet Calculator

Warehouse cost per pallet must be calculated on occupied positions, not installed positions, because vacant racking still costs rent. The cost of vacancy is the figure that justifies either subletting space or densifying the storage layout.

Formulas

Cost per position

Per position = (Rent + Other fixed facility cost) / Pallet positions

Cost per occupied pallet

Per occupied pallet = Total cost / (Positions x Occupancy %)

Worked example

With the default values below, Warehouse Rent Per Pallet Calculator returns Cost per occupied pallet per year of $11,520.74. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual warehouse rent and service charge
48,000,000
Pallet positions in the warehouse
6,200
Average pallet occupancy
84
Other annual fixed facility cost
12,000,000

Results

Cost per occupied pallet per year
$11,520.74
Cost per pallet position per year
$9,677.42
Cost per occupied pallet per month
$960.06
Annual cost of vacant positions
$9,600,000.00

Step by step

  1. 1Values used
  2. 2Cost per position
  3. 3Cost per occupied pallet
  4. 4Cost per occupied pallet per year= 11,520.74
  5. 5Cost per pallet position per year= 9,677.42
  6. 6Cost per occupied pallet per month= 960.06
  7. 7Annual cost of vacant positions= 9,600,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why use occupied rather than installed positions?

Because the cost has to be recovered from the stock actually stored. Costing on installed positions understates the true rate you need to charge or absorb.

Is 84% occupancy good?

Around 85% is generally the practical maximum for efficient putaway and picking. Above 90% travel time and double-handling rise sharply.

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