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 (\$)