Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Cost per occupied position/mo
$16.22
Cost per position (all slots)/mo
$13.30
Occupied positions
4,100
Annual cost per position
$194.63
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How to use this
- 1Enter monthly rent/mortgage ($).
- 2Enter utilities + insurance + tax ($).
- 3Enter racking amortization per month ($).
- 4Enter storage-related labor per month ($).
- 5Enter total pallet positions.
- 6Enter average occupancy rate (%).
- 7Read your cost per occupied position/mo on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Warehouse operators quote storage by the pallet position but rarely break out what a slot actually costs to run. This calculator takes your building's fixed occupancy costs (rent, racking amortization, utilities, insurance, property tax) plus a share of labor for putaway and cycle counting, and divides by total pallet positions to get a true monthly cost per slot. That number is the floor for any storage rate you quote a customer, and it's the benchmark you compare against a 3PL's storage fee when deciding to build versus outsource. Facilities running below 85% occupancy carry a heavier per-position cost because fixed costs don't shrink with empty racking, which is why utilization rate is a required input rather than an afterthought. Use this before signing a lease, sizing a rack buildout, or benchmarking a 3PL storage quote against your own four walls.
Worked example
Using the values the calculator loads with:
Inputs
- Monthly rent/mortgage: 45000 $
- Utilities + insurance + tax: 9000 $
- Racking amortization per month: 4500 $
- Storage-related labor per month: 8000 $
- Total pallet positions: 5000
- Average occupancy rate: 82 %
Results
- Cost per occupied position/mo: $16.22
- Cost per position (all slots)/mo: $13.30
- Occupied positions: 4,100
- Annual cost per position: $194.63
What each field means
Inputs
- Monthly rent/mortgage ($)
- The monthly rent/mortgage used in the calculation, measured in $. Starts at 45000 $ so you have a working example on load.
- Utilities + insurance + tax ($)
- The utilities + insurance + tax used in the calculation, measured in $. Starts at 9000 $ so you have a working example on load.
- Racking amortization per month ($)
- The racking amortization per month used in the calculation, measured in $. Starts at 4500 $ so you have a working example on load.
- Storage-related labor per month ($)
- The storage-related labor per month used in the calculation, measured in $. Starts at 8000 $ so you have a working example on load.
- Total pallet positions
- The total pallet positions used in the calculation. Starts at 5000 so you have a working example on load.
- Average occupancy rate (%)
- The average occupancy rate used in the calculation, measured in %. Starts at 82 % so you have a working example on load. Accepted range: 1–100 %.
Results
- Cost per occupied position/mo
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Cost per position (all slots)/mo
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Occupied positions
- Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual cost per position
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why does occupancy rate matter so much?
Fixed costs like rent and racking depreciation don't change whether a slot is empty or full. If you run at 60% occupancy instead of 90%, the same fixed cost pool spreads over fewer occupied slots, pushing your true per-pallet cost up by 50% even though nothing else changed. Quoting storage rates off a target occupancy that you never hit is the most common way 3PLs erode margin.
How do I know if my storage rate is competitive?
Compare your fully loaded cost per position against public 3PL rate cards, which typically run $15-$35 per pallet per month depending on region and whether it's ambient, cold, or hazmat space. If your internal cost is above the market 3PL rate, outsourcing storage may beat owning it, especially for slow-moving SKUs.
Should I include labor in this cost?
Yes, but only the portion tied to storage itself — putaway, slotting maintenance, and cycle counts. Pick and pack labor belongs in a pick rate calculation instead. Mixing the two inflates your storage cost and understates your pick cost, which distorts decisions on both fronts.
What's a realistic racking amortization number?
Selective pallet racking runs roughly $150-$300 installed per pallet position depending on height and seismic requirements. Amortized over a 15-year useful life, that's roughly $1-$2 per position per month, but add in sprinkler modifications, forklift-rated flooring, and permits and the real number is often double the rack-only estimate.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Pallet Position Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/pallet-position-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/pallet-position-cost" target="_blank" rel="noopener">Pallet Position Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Pallet Position Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/pallet-position-cost) (2026).