Rent Affordability Calculator
Use this tool to determine if you can afford a commercial space
Our Commercial Rent Affordability Calculator is an easy-to-use tool designed to help business owners determine if they can afford a potential commercial rental space. By inputting your monthly revenue, operating expenses, and estimated rental costs (including base rent, utilities, maintenance, and other fees), this calculator provides a clear breakdown of your financial situation. It helps you understand your net available budget for rent, compares it to total rental costs, and gives you a cash flow assessment.
Whether you're considering expanding or leasing your first space, this tool ensures you're making informed decisions for the financial health of your business. Being smart about your business decisions with the necessary tools is the Small Bay Solutions way.
Some of the terms confusing? Scroll down for a list of definitions.
Call Small Bay Solutions to talk about your business and how we can support you in this process.
Commercial Rental Space Affordability Calculator
Step 1: Determine Your Monthly Revenue
Step 2: Calculate Your Monthly Operating Expenses
Step 3: Estimate Your Available Budget for Rent
Step 4: Estimate Potential Rental Costs
Step 5: Compare Your Budget to Rental Costs
Step 6: Assess Your Affordability
If the calculator shows a positive cash flow...
Get on the phone to Small Bay Solutions and get your space reserved now! Call 479-841-1143 today to schedule a showing.
If the calculator shows a negative cash flow...
If the calculator shows a negative cash flow or you're unsure about affording the rent, don’t worry—this is the perfect time to plan ahead!
Consider your growth projections for the year and explore ways to increase revenue or reduce expenses. You can adjust the numbers in the calculator to try different scenarios and see how much more you could generate to cover the cost of the space comfortably. Use this tool to help craft a strategy for growing into the right unit for your business.
Why Small Bay Solutions?
Choosing Small Bay Solutions goes beyond just securing a space. We offer flexible, scalable units that allow your business to grow and adapt as you thrive. Our facilities are designed with small businesses in mind, offering:
- Small business resources brought to you
- Paid advertising and social media campaigns
- A community of like-minded entrepreneurs and small business owners
By being located at one of our facilities, you’re setting your business up for success in a space that works with you, helping you focus on what matters most—your growth.
Definition of Terms
Monthly Revenue:
The total amount of money your business earns each month before any expenses are deducted. This includes sales, services, and any other income sources.
Operating Expenses:
The recurring costs required to keep your business running. These typically include employee wages, utilities, insurance, supplies, marketing, taxes, and more.
Utilities:
Costs for services like electricity, water, gas, internet, and phone service that keep your business operational.
Insurance (business, liability, etc.):
Monthly payments for insurance coverage that protects your business, property, and liability against potential risks or damages.
Taxes:
The monthly portion of local, state, or federal taxes that your business is required to pay. This may include sales tax, income tax, or other applicable taxes.
Base Rent:
The fixed amount of money you pay monthly for the rental space, often calculated per square foot for commercial properties.
Common Area Maintenance (CAM) Fees:
Fees that tenants may be required to pay in commercial spaces to cover the cost of maintaining common areas like parking lots, lobbies, or hallways. This is often a shared expense among tenants in a multi-unit building. FYI: no CAM fees for Small Bay Solutions.
Net Available for Rent:
The amount of money you have left after covering all your business operating expenses. This figure helps determine how much you can comfortably afford for rent.
Remaining Cash Flow:
The amount of money left after subtracting your total rental costs from your available budget. Positive cash flow indicates you can afford the space, while negative cash flow suggests it's not financially feasible.
Projected Revenue Growth:
An estimate of how much your business revenue may increase over time. This is important to consider when determining if you’ll be able to afford rent in the future.
Projected Expense Changes:
Expected increases or decreases in your operating expenses in the near future. Factoring in future expenses helps ensure your rent remains affordable as your business evolves.