Percentage Rent Calculator

Percentage rent is an additional rent component common in retail leases. Once your gross sales exceed a threshold called the breakpoint, you pay a percentage of sales above that level to the landlord. This aligns landlord incentives with tenant success.

The natural breakpoint is calculated by dividing your annual base rent by the percentage rate. For example, $48,000 base rent at a 6% rate produces a natural breakpoint of $800,000. You only pay percentage rent once sales exceed this level.

Most percentage rent leases exclude sales tax, employee discounts, returns and allowances, layaway deposits, and transactions at other locations. Review your lease's gross sales definition carefully; landlords sometimes include items that should be excluded.

An artificial breakpoint set below the natural breakpoint means you pay percentage rent sooner than you should, effectively raising your total rent cost. Verify your lease's breakpoint provision and calculate the natural breakpoint using your actual base rent and percentage rate. CAMAudit reviews your lease documents to flag these types of structural billing errors and quantifies the overcharge across your full lease term.