Breakpoint Sales Growth Calculator

Percentage rent kicks in once sales exceed the breakpoint. This calculator computes the growth required to get there and the resulting rent to LL.

Current annual sales

Breakpoint (annual sales $)

% rent rate over breakpoint

Sales growth to breakpoint

11.11%

$ gap to breakpoint

$200,000

Rent owed at +10% over breakpoint

$10,000

How the math works

Breakpoint math: natural = base rent ÷ % rate. Above breakpoint, tenant owes percentage of the overage.

Know this before lease negotiations. Aggressive LL sets breakpoint at natural; tenant pushes 15-25% above. Meet in middle — with reporting and audit rights intact.

How to Use

Enter current annual sales.
Enter natural breakpoint (base rent ÷ % rate).
Enter percentage rent rate.
Read growth needed and incremental rent.

Frequently Asked Questions

What's a natural breakpoint?

Sales threshold = annual base rent ÷ % rent rate. E.g., $100k base rent with 5% % rent = $2M natural breakpoint. Above that, tenant pays 5% of overage as additional rent.

Why matter for LLs?

LLs know breakpoint math ahead of leases so they don't leave money on the table. Setting artificial breakpoint 20% above natural is sponsor-friendly; setting at natural is LL-friendly.

How do tenants think about it?

Tenants hate breakpoints — they signal sharing upside with LL. They'll fight for high breakpoints or cap the overage rent. LLs with leverage hold the line.