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Percentage rent is rent calculated as a percentage of a tenant’s gross sales above a defined breakpoint. Set up the structure once, then generate calculations and payments each period.

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Natural breakpoint formula

A natural breakpoint is calculated as: Base Rent ÷ Percentage Rate For example: “In addition to minimum rent, the tenant pays 5% of gross sales over the natural breakpoint.”
1

Verify the recurring cost

In Lease Details → Recurring Costs, confirm that the base rent (or applicable fixed rent) record exists. If the percentage rent needs special allocation logic, also create a recurring cost with the Percentage Rent payment type.
2

Open Percentage Rent

Go to Lease Financials → Percentage Rent and click New.
3

Configure basic info

  • Breakpoint Type — for example, Natural Breakpoint
  • Calculation Method — for example, Period-to-Date, No Annual True Up
  • Report Format, First/Last Reporting Dates, Monthly Sales Report Due Day
  • Include in Breakpoint — select the recurring cost used in the breakpoint calculation
  • Start Month, Payment Frequency, Monthly Payment Due Day
  • Status — Active
  • Payment Type to Assign — the payment type on generated percentage rent payments (for example, Percentage Rent)
Click Save.
4

Add breakpoints

Click the Breakpoints tab, then New. Enter:
  • Effective From / To dates
  • Percentage — the rate applied to sales above the breakpoint
  • Breakpoint Factor — the percentage used to calculate the breakpoint amount
Click Save.
5

Define sales types

Click Exclusions/Offsets/Caps, then New. At minimum, add:
  • Sales Type — Sales
  • Subtype — Gross Sales
  • Sales Code — for example, 50001
  • Effective From / To dates
Add additional records for any exclusions or caps that apply to this lease. Click Save.
If a recurring cost does not appear in the Include in Breakpoint dropdown, return to Lease Details → Recurring Costs and confirm the cost record has been created.