Storage & Preservation Cost Calculator
Estimate total annual storage and preservation costs including facility rent, utilities, labor, insurance, and equipment depreciation.
Formulas Used
Annual Facility Cost = Storage Area (sq ft) × Rent per Sq Ft per Year
Annual Utility Cost = Monthly Utility Cost × 12
Annual Labor Cost = Labor Hours per Week × 52 × Hourly Rate
Annual Depreciation (Straight-Line) = Equipment Cost ÷ Useful Life (years)
Annual Maintenance Cost = Equipment Cost × (Maintenance % ÷ 100)
Total Annual Cost = Facility + Utility + Labor + Depreciation + Maintenance + Insurance
Monthly Cost = Total Annual Cost ÷ 12
Cost per Sq Ft/Year = Total Annual Cost ÷ Storage Area
Assumptions & References
- Depreciation uses the straight-line method: equal expense each year over the asset's useful life (IRS Publication 946).
- Labor cost assumes 52 working weeks per year with no overtime premium.
- Utility costs are assumed constant month-to-month; seasonal variation is not modeled.
- Maintenance percentage is applied to the original equipment cost (not depreciated book value).
- Insurance is entered as a flat annual premium; adjust for policy type (property, liability, etc.).
- No tax, financing, or opportunity-cost adjustments are included.
- Reference: APICS Supply Chain Management body of knowledge; IRS Pub. 946 (depreciation); BOMA occupancy cost benchmarks.