RPCF

Real Estate

Retail Property Cash Flow Calculator

Combine base rent, percentage rent, tenant sales, recoveries, vacancy, operating costs, reserves, and debt service in a retail-specific cash-flow model.

Storefront underwriting

Separate guaranteed rent from sales-dependent percentage rent

Retail performance is modeled through occupied area, tenant sales, the contractual breakpoint, reimbursements, property costs, and financing.
Base rent$669,760
Percentage rent$0
Effective gross income$888,720
NOI$587,720
Cash flow$200,720
DSCR1.70x

Lease decision view

Sales breakpoint and percentage-rent response

The line stays at zero below the contractual breakpoint and rises only on excess tenant sales.

Detailed calculation process

The percentage clause is an option on tenant sales—not a second charge on all sales

General symbolic formulas

Ao = A × oB = AorP = Aomax(s-b, 0)pEGI = B + P + AocNOI = EGI - AeCF = NOI - Q - D; DSCR = NOI / D

Occupancy converts gross leasable area to paying area. Percentage rent applies only to sales above the entered breakpoint. CAM recovery adds income, while operating cost is charged to the full property.

Symbol names, meanings, and units

A, Ao gross and occupied area (ft²)o occupancy (decimal)r base rent ($/ft²/year)s, b sales and breakpoint ($/ft²/year)p percentage-rent rate (decimal)c CAM recovery ($/ft²/year)e property cost ($/ft²/year)Q, D reserve and debt ($/year)

Worked substitution with current inputs

Retail income reconciliation

Line itemLease basisAnnual value

Use steps

  1. Read occupancy and signed rent from the rent roll.
  2. Use tenant-reported sales for the same annual period.
  3. Confirm whether recoveries and percentage rent are collectible.

Practical situations

Sales upside: test $520/ft² sales after a tenant matures.

Vacancy shock: reduce occupancy to 78% before renewing a loan.

Limitations

The snapshot omits co-tenancy clauses, exclusives, tenant allowances, free rent, sales-report audits, lease expirations, property taxes on sale, and monthly seasonality.

Retail property FAQ

Why can percentage rent be zero?

Because the entered sales level does not exceed the contractual breakpoint.

Does CAM recovery cancel CAM expense?

Not automatically; recovery caps, exclusions, and tenant shares can differ from property cost.

Is DSCR calculated after reserve?

No. This page uses NOI before reserve divided by debt service and shows reserve in cash flow.