Rent affordability and break-even calculator
Check whether a shop rent fits your sales before you sign.
Can the business carry this rent?
- Rent as % of sales
- 10.0%
- Break-even salesSales needed to cover rent, staff and other fixed costs
- RM 100,000/month
- Sales needed at your target ratio
- RM 150,000/month
- Highest rent at your target ratio
- RM 15,000/month
- Rent per sq ft
- RM 6.00
- Estimated monthly operating surplusBefore tax, depreciation and fit-out payback
- RM 30,000
What does this mean?
The rent sits within your target share of sales.
This is a planning estimate, not a sales forecast. Compare the rent with typical hub rents, or ask MCE for free location advice for your trade.
For reference only, not legal, tax or financial advice. Rates can change; confirm with your lawyer, bank, tax adviser or LHDN before you sign or pay.
How it works
- Rent per sq ft = monthly rent ÷ size
- Rent as % of sales = monthly rent ÷ monthly sales
- Break-even sales = (rent + staff + other fixed costs) ÷ gross margin
- Highest rent at target = monthly sales × target %
Worked example
A café expects RM 150,000 sales a month, 60% gross margin, RM 30,000 staff and RM 15,000 other fixed costs, looking at a 2,500 sq ft shop for RM 15,000: rent is 10.0% of sales and RM 6.00 per sq ft, break-even is RM 100,000 a month, and the operating surplus is about RM 30,000.
Frequently asked questions
What percentage of sales should rent be?
How much sales do I need for RM 15,000 rent?
Is a more expensive shop always more profitable?
What is break-even sales?
Related guides
Want the numbers for a real shop?
Send us the unit or the area you are looking at. We will share the asking rent or price, recent comparables and what tenants in that hub usually pay.