Free tool
3PL storage cost calculator
Your storage cost per pallet position is the storage floor's share of the building's monthly cost, divided by storage square feet, times the floor one pallet position takes, divided by the rack levels on it. Divide by your average occupancy to get what each occupied position must carry, then mark up for margin.
Your building
What storage costs you
Storage is 63% of the building: $25,333 a month, $0.667 per storage square foot, about 5,700 pallet positions.
| Per month | Cost if full | At 80% full | Suggested rate |
|---|---|---|---|
| Pallet position | $4.44 | $5.56 | $7.94 |
| Bin location | $0.40 | $0.50 | $0.71 |
| Cubic foot | $0.028 | $0.035 | $0.050 |
Suggested rate = cost at your occupancy ÷ (1 − 30% margin). Cubic foot uses the full usable height.
Questions people ask
What should go into the monthly building cost?
Everything the space costs you whether or not it holds inventory: rent, common area charges, property tax and insurance passed through, utilities, and security. Labor and equipment are handled in your handling fees, not here.
Why divide by occupancy?
Empty positions still cost rent. If you run at 80% full, each occupied position has to pay for itself and a quarter of an empty one. Pricing at 100% occupancy is the most common way warehouses under-price storage.
What footprint should I use for a pallet position?
The floor a 40×48 pallet takes is about 13.3 square feet, but each position also needs its share of the aisle in front of it. 18–25 square feet per footprint is typical for selective racking with forklift aisles; less for narrow-aisle or drive-in racking.
Should I charge per pallet, per bin or per cubic foot?
Per pallet suits palletized and case goods; per bin suits each-pick inventory; per cubic foot is fairest for mixed catalogs but needs accurate product dimensions. Many 3PLs use more than one, plus a monthly minimum.
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