Percentage Rent Calculator

Use our free Percentage Rent Calculator to quickly estimate total rent under percentage leases. Enter base rent, gross sales, breakpoint, and the percentage rate to see how much you'll pay (or collect). Perfect for retailers, landlords, asset managers, and brokers.

Percentage Rent Formula

Excess Sales = max(0, Gross Sales − Breakpoint) Percentage Rent = Excess Sales × Percentage Rate Total Rent = Base Rent + Percentage Rent
Example:
Base Rent = $5,000/month Gross Sales = $120,000/month Breakpoint = $100,000 Percentage Rate = 5% Excess Sales = 120,000 − 100,000 = $20,000 Percentage Rent = 20,000 × 0.05 = $1,000 Total Rent = 5,000 + 1,000 = $6,000

Percentage rent adds a variable rent component based on sales performance. If gross sales exceed the breakpoint, a percentage of the excess is charged in addition to the fixed base rent.

How this percentage rent calculator works

The calculator compares gross sales to the breakpoint, computes excess sales (if any), multiplies by the agreed percentage rate to get percentage rent, and adds that to base rent for a clear total. Use it to model lease offers, forecast rent under different sales scenarios, and plan monthly cash flow.

When to use this percentage rent calculator

During lease negotiations to test different breakpoints and rates

Budgeting annual rent under seasonal sales patterns

Comparing base-heavy vs percentage-heavy lease structures

Validating natural vs negotiated (artificial) breakpoints

Planning rent accruals and reconciliations for accounting

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Typical Percentage Rent Terms

Benchmarks vary by asset type and market, but these ranges are common:

Retail percentage rate

5%–7% of sales over breakpoint
net margin

Restaurant percentage rate

6%–10% of sales over breakpoint
net margin

Natural breakpoint (rule of thumb)

Base Rent ÷ Percentage Rate
net margin

Reconciliation

monthly accrual with annual true-up in many leases
net margin

Use your historical sales and traffic forecasts to set realistic breakpoints and negotiate fair percentage rates.

Frequently Asked Questions

A rent structure where tenants pay base rent plus a percentage of sales over an agreed breakpoint.

A breakpoint implied by Base Rent ÷ Percentage Rate; many leases instead use a negotiated (artificial) breakpoint.

Depends on the lease; many track monthly and reconcile annually. Set the calculator period to match your lease.

Only base rent is due; percentage rent = $0.

Leases usually define "gross sales" precisely—returns may be excluded; sales tax is usually excluded. Check your lease.

Yes, some leases have tiered percentage rates at higher sales bands. Model each tier and sum.

No. This calculator covers base + percentage rent. Add CAM/NNN separately if your lease requires them.

Multiply monthly totals by 12 (or use the annual mode in the calculator).