Natural breakpoint
A natural breakpoint is calculated by dividing the base rent of the settlement period by an agreed percentage. The turnover rent owed by the lessee is equal to this percentage multiplied by the amount by which turnover exceeds the breakpoint. With a natural breakpoint, a lessee pays a base rent and pays a percentage turnover rent on top of that whenever their sales go above the breakpoint.
The natural breakpoint percentage is registered on the turnover group. The fixed base rent for a settlement period is divided by this percentage. The turnover rent is calculated as follows:
(reported turnover for settlement period - (fixed base rent / percentage)) * breakpoint percentage
 | If the amount is negative, no turnover rent is taken into account. |
Example
A lessor and lessee agree that the lessee will pay turnover rent equal to 5% over the natural breakpoint. If the annual base rent is $100,000, then the breakpoint would be equal to $100,000 ÷ 5%, which is $2,000,000.
If the lessee's turnover for a year was equal to $2,500,000, then the lessee would pay $25,000 in turnover rent, which is calculated by multiplying 5% by the amount by which turnover exceeds the breakpoint: $500,000 × 5% = $25,000.