Calculating Percentage Rent

[Guest]

How can I use excel to calculate percentage rent?

Example - I am the owner of a retail building and I lease to a deli. I have
a lease that states I receive 7% of gross annual sales up to $500,000 and 3%
of gross annual sales over $500,000.

If I have the total gross annual sales in one column, is there an equation
that I can use that will take the 7% of $500,000 and 3% of anything above
$500,000?

thank you

 

[Guest]

Assume the gross is in cell A1. Use this:

=.07*min(500000,A1)+.03*max(0,A1-500000)

 

[Niek Otten]

And, for a more generic solution, look here:

http://www.mcgimpsey.com/excel/variablerate.html

 

[Guest]

perfect. thanks for the help!

Assume the gross is in cell A1. Use this:

=.07*min(500000,A1)+.03*max(0,A1-500000)

 

[Guest]

excellent source for info. thanks for the help.

And, for a more generic solution, look here:

http://www.mcgimpsey.com/excel/variablerate.html