How to use the estimate
The primary ratio divides recurring annual occupancy cost by projected revenue. The adjusted ratio adds a simple annualized share of one-time premises investment. A supplemental ratio compares adjusted occupancy cost with entered gross profit.
No single ratio determines affordability. Use business-specific margins, seasonality, growth cases, financing, working capital and downside forecasts with qualified financial advice.
Planning estimate only: Verify lease definitions, measurement, tax, utilities, operating costs, incentives, dates and local legal treatment. Results are not a quotation or valuation.