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Business & Self-Employed2026/27 VerifiedIRS Compliant

Commercial Lease & Break-Even Sales Calculator

Calculate total monthly commercial lease costs including NNN expenses and determine your break-even sales volume. Find out the revenue needed to run a profitable space.

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Tax Year 2026/27
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Calculation Methodology & Statutory Rules

Audit Details โ†’

Monthly Gross Profit = Monthly Revenue * (1 - COGS%).

Monthly Fixed Costs = Monthly Rent + Other Monthly Operating Expenses.

Monthly Net Operating Profit = Monthly Gross Profit - Monthly Fixed Costs.

Break-Even Monthly Revenue = Monthly Fixed Costs / Gross Margin %.

Annual Pre-Tax Profit = Monthly Net Operating Profit * 12.

Corporate Income Tax = Annual Pre-Tax Profit * (21% Federal Corporate Rate + State Business Tax Rate).

Annual Net Profit = Annual Pre-Tax Profit - Corporate Income Tax.

Frequently Asked Questions

Q1.How is commercial lease break-even revenue calculated?

Break-even revenue is calculated as Total Monthly Fixed Overhead (Rent + Payroll + Utilities) divided by your Gross Profit Margin percentage (100% minus COGS%).

Q2.What is a healthy rent-to-revenue ratio for a small business?

Generally, occupancy costs (rent + CAM/NNN) should be between 6% and 10% of gross revenue for retail businesses, and 8% to 12% for restaurants.

Q3.What is the difference between Gross Rent and NNN (Triple Net) Lease?

With Gross Rent, you pay a single flat monthly fee including taxes and maintenance. With NNN (Triple Net), you pay base rent plus your proportionate share of property taxes, building insurance, and common area maintenance (CAM).

Q4.How does corporate tax impact small business net profits in 2026?

The US federal C-Corporation tax rate is a flat 21%. State corporate tax rates range from 0% (TX, FL, WA) to over 9% (CA, NJ). Pass-through entities (LLCs/S-Corps) pass pre-tax profit to individual tax returns instead.

Disclaimer: Results are estimates based on standard tax rules for the 2026 tax year and are provided for informational purposes only. Individual circumstances (deductions, credits, specific state/local rules) may significantly affect your actual tax liability. Always consult a qualified tax professional or accountant for advice specific to your situation.