Percentage Rent Calculator

Formula

The formula to calculate Percentage Rent is:

\[ Rsales = (TS - BPS) \cdot \frac{POS}{100} \]

Where:

$ Rsales $ is the Percentage Rent ($)
$ TS $ is the Total Sales ($)
$ BPS $ is the Break Point Sales ($)
$ POS $ is the Percentage of Sales (%)

Percentage Rent Definition

Percentage rent is the additional rent owed on top of base rent, calculated based on the total sales exceeding a certain break point. It is commonly used in commercial leases where the tenant pays a base rent plus a percentage of their sales.

Example Calculation

Let's consider an example:

Total Sales (TS): $500,000
Break Point Sales (BPS): $300,000
Percentage of Sales (POS): 5%

Using the formula to calculate Percentage Rent:

\[ Rsales = (500,000 - 300,000) \cdot \frac{5}{100} = 10,000 \, \text{\$} \]

This demonstrates that with total sales of $500,000, break point sales of $300,000, and a percentage of sales of 5%, the percentage rent would be $10,000.