A natural breakpoint is used to determine the threshold at which, in addition to the base rent, turnover rent is calculated. This breakpoint is established by dividing the base rent for a given settlement period by an agreed percentage. Once the lessee's turnover exceeds this breakpoint, a percentage of the excess turnover is owed as turnover rent. With a natural breakpoint, the lessee always pays the fixed base rent. When turnover exceeds the calculated breakpoint, the lessee pays the agreed percentage on the excess turnover as turnover rent. The natural breakpoint percentage is registered on the turnover group.

If the result is negative, no turnover rent is due.

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.