Tools
Percentage rent calculator for restaurants and bars
Some leases charge a fixed monthly rent plus a cut of your sales once you pass a certain number. Plug in your lease terms to see where that cut starts, what you'll owe at different sales levels, and how much of every sales dollar goes to rent.
Your lease terms
The fixed rent you owe no matter how sales go. Monthly base rent × 12.
The share of sales the landlord takes after you pass the breakpoint. It's in the percentage rent section of your lease.
Leased square feet from the lease. Include patio only if the lease charges for it.
A full year of sales, counted the way your lease counts them. That usually means food and beverage sales before sales tax and tips.
Some leases name a specific sales number where the percentage starts instead of using a formula. If yours does, enter it here. If not, leave this blank.
Where the landlord's cut starts
$1,200,000
Base rent ÷ landlord's percentage. Below this, you pay base rent only. Above it, the landlord takes its percentage of every extra dollar.
Extra rent owed
$0
What you pay on top of base rent at your expected sales.
Total rent for the year
$72,000
Base rent plus extra rent.
Rent as a share of sales
6.00%
The number operators watch. bigInk coaches clients toward 6–10% of sales. This is rent only; CAM, property taxes and insurance come on top.
Sales the landlord shares in
$0
Your sales minus the breakpoint.
Average monthly rent
$6,000
Total rent ÷ 12. Percentage rent is often paid in a lump sum or quarterly, so actual monthly checks may differ.
Base rent per sq ft (annual)
$24
Total rent per sq ft (annual)
$24
Compare this to other spaces you're looking at.
What you'll pay in a slow year vs. a big year
The emailed PDF includes this table plus the full breakpoint math.
| Year | Sales | Extra rent | Total rent | Share of sales |
|---|---|---|---|---|
| Slow year (60% of your estimate) | $720,000 | $0 | $72,000 | 10.00% |
| Soft year (80%) | $960,000 | $0 | $72,000 | 7.50% |
| On plan (100%) | $1,200,000 | $0 | $72,000 | 6.00% |
| Strong year (120%) | $1,440,000 | $14,400 | $86,400 | 6.00% |
| Very strong year (140%) | $1,680,000 | $28,800 | $100,800 | 6.00% |
| Breakout year (160%) | $1,920,000 | $43,200 | $115,200 | 6.00% |
Look at the last column. In a slow year, fixed rent takes a bigger bite out of every sales dollar, and that's where restaurants get squeezed. Once you pass the breakpoint, the share holds steady because the landlord grows with you. You never pay less than base rent, no matter how bad the year is.
Check your lease before you trust the number
The calculator is only as good as the lease definitions behind it. Before you sign, get clear answers on these:
- What counts as "sales." Ask whether these are excluded: sales tax, tips, gift cards (sold vs. redeemed), comps and employee meals, third-party delivery commissions, off-site catering, and merchandise. Each exclusion lowers what the landlord takes.
- How and when you report sales. Many leases require monthly or annual sales reports and give the landlord the right to audit your books.
- Whether the landlord can take the space back. Some leases let the landlord end the lease if sales stay below a set number. That's usually called a recapture or kick-out clause.
- What's not in this math. CAM, property taxes and insurance are billed separately. Your true occupancy cost is higher than what's shown here.
Negotiating a restaurant or bar lease? Talk to us before you sign.
The breakpoint, the percentage, and what counts as sales are all negotiable. We do this every day for restaurant, bar, brewery and distillery operators across Texas.
Contact usEstimates only. Your lease controls. Confirm how it defines sales, what it excludes, how often sales are reported, and whether it includes a recapture clause. Figures don't include CAM, taxes, insurance or other occupancy charges.