How To Calculate Storage Space Cost

If the total of step 2 was 750 000 then your cost per square foot would be 18 63.

How to calculate storage space cost. Review the financial statements to determine the expenses incurred by the warehouse during the past year. Calculate the warehouse costs as the cost of long term storage for produced merchandise. Although the storage sizes listed in the table are the most popular we also found these storage options in our research. Do this by measuring the.

Use this pallet storage cost calculator to easily calculate the cost to store pallets in your warehouse. The cost to store hold or carry inventory consists of 1 the cost of the space used including rent heat maintenance etc 2 the cost of the money tied up in inventory 3 the cost of insurance and perhaps property tax and 4 the cost of deterioration and obsolescence of the inventory items. How to calculate warehouse space utilization 1. Well the first thing you need to do is calculate the capacity of the warehouse in square feet.

Some of the storage costs are a function of the cost or value of the inventory while some storage costs are dependent on the physical size of the items. It s a handy materials handling calculator for warehouse professionals. First we need to measure the storehouse by square feet and calculate the total cost of renting it along with charges like electricity water supply. How to calculate warehouse storage costs.

Calculate your inventory cube size once you have calculated your warehouse storage capacity or cube size you need. Calculate storage costs an additional way. This information is valuable when calculating the cost of a new facility as compared to an existing facility. Next the finished items to be stored like maybe a piece of furniture is considered as inventory.

For example if you consistently used 10 gb of storage for the first half of the month and none for the second half of the month you would be billed for your average usage of 5 gb of storage. Include the land costs building costs utilities payroll and special costs if your products require special storage conditions such as cooling. Divide the total expenses incurred by the warehouse by the number of square feet in the warehouse. Climate controlled storage costs are based on a 25 increase over regular storage unit prices.

Storage capacity is billed in units of the average daily amount of data stored in gigabytes gb over a monthly period. If you have any questions please don t hesitate to contact our company concierge. Calculate the total size of your warehouse one of the first mistakes warehouse managers make in calculating the size.