Work out warehouse rent per pallet instantly with clear inputs, formula shown and shareable results.
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.
Cost per position
Per position = (Rent + Other fixed facility cost) / Pallet positions
Cost per occupied pallet
Per occupied pallet = Total cost / (Positions x Occupancy %)
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.
Around 85% is generally the practical maximum for efficient putaway and picking. Above 90% travel time and double-handling rise sharply.