Enter the total sales ($), the break point sales ($), and the percentage of sales (%) into the calculator to determine the Percentage Rent. A percentage rent is a fee that a tenant pays on top of their base rent based on how much revenue in sales they earn past a given break point that is agreed upon at the signing of the lease.

Percentage Rent Formula

The following formula is used to calculate the Percentage Rent. 

Rsales = (TS – BPS) * POS/100

  • Where Rsales is the Percentage Rent ($)
    • This is the additional rent owed on top of base rent
  • TS is the total sales ($) 
  • BPS is the break point sales ($) 
  • POS is the percentage of sales (%) 

How to Calculate Percentage Rent?

The following example problems outline how to calculate Percentage Rent.

Example Problem #1

  1. First, determine the total sales ($). In this example, the total sales ($) is given as 500000 .
  2. Next, determine the break point sales ($). For this problem, the break point sales ($) is given as  250000 .
  3. Next, determine the percentage of sales (%). In this case, the percentage of sales (%) is found to be 5.
  4. Finally, calculate the Percentage Rent using the formula above: 

Rsales = (TS – BPS) * POS/100

Inserting the values from above yields: 

Rsales = (500000 – 250000) * 5/100 = 12,500 ($)


Example Problem #2

The variables needed for this problem are provided below:

total sales ($) = 600000

break point sales ($) = 300000

percentage of sales (%) = 7

Entering these values and solving gives:

Rsales = (600,000 – 300,000) * 7/100 = 21,000 ($)