Breakpoint Rent Reset Calculator

Percentage rent kicks in at breakpoint. This calculator sets it.

Annual sales

Annual base rent

Percentage rent rate

Breakpoint type (1=natural, 0=artificial)

Artificial breakpoint

Percentage rent due

Breakpoint used

$7,000,000

Sales over breakpoint

How the math works

Breakpoint = base / rate (natural) or negotiated number (artificial). Overage × rate = percentage rent.

Landlords push artificial breakpoints 10-20% below natural in strong markets to capture upside earlier. Tenants push artificial breakpoints above natural to delay participation. Natural BP is the classic middle-ground default most leases settle to when markets are balanced.

How to Use

Enter annual sales.
Enter base rent annual.
Enter percentage rent rate %.
Enter mode (natural/artificial).
Enter artificial breakpoint $.
Read percentage rent due.

Frequently Asked Questions

Natural breakpoint?

Sales level where base rent equals percentage rent rate × sales. Example: $400k base rent, 8% rate. Natural BP = $5M (since 8% × $5M = $400k). Percentage rent starts above this, doesn't double-collect.

Artificial breakpoint?

Negotiated fixed dollar number below or above natural. Landlord-friendly: low artificial BP = earlier % rent. Tenant-friendly: high artificial BP = less % rent. Common in anchor leases where landlord wants sales upside participation.

Rate ranges?

Restaurants: 4-6% over natural BP. Apparel: 4-7%. Entertainment: 5-8%. Specialty: 6-8%. Rates lower than comparable OCR to prevent punishing success but still create participation.