Commercial Lease Total Cost Calculator
Enter your lease terms to calculate Year 1 occupancy cost, ongoing annual cost, and total lease commitment. Includes service charges, business rates estimate, fit-out, and deposit.
Commercial Lease Total Cost
Year 1 cost, annual occupancy cost, total lease commitment
Typically 10–25% for multi-let offices and retail
Check on the VOA website — used to estimate business rates
One-off capital expenditure to make the premises ready
Typically 3–6 months — held against arrears or dilapidations
Typical incentive — 1 month per year of lease term
Leave blank if unknown — used to calculate cost per sq ft
Annual costs
One-off costs
5 things to check before signing
- Schedule of Condition — limits your dilapidations liability at lease end.
- Business rates — verify the rateable value on the VOA website; you may be able to appeal.
- Service charge cap — negotiate a maximum annual increase (e.g. capped at CPI).
- Break clause — ensure you have an exit at years 3 or 5; follow break conditions exactly.
- Alienation rights — confirm you can sublet or assign if your business changes.
What does a commercial lease really cost?
The headline rent is only one part of the total occupancy cost. A complete picture includes: service charges (often 15–25% on top of rent), business rates (based on rateable value), fit-out costs spread over the lease term, and the opportunity cost of the deposit.
Occupancy cost ratio
Occupancy cost as a percentage of revenue is a key benchmark — ideally below 15% for most businesses. Retail businesses in prime locations may accept up to 20–25%, but anything higher makes profitability very difficult to sustain.