1. Finance
  2. Operational Costs

Utility and Rent Expenses

Money

The total expenditure for utilities (like water, electricity) and renting or leasing physical spaces. A fixed cost that can significantly impact profitability, especially for businesses that require large physical locations.

Formula

Sum of all utility bills + rent or lease payments

Example

If monthly rent is $20,000 and utilities cost $5,000, the combined monthly expense is $25,000.