Business lease calculator

How it works

Annual rent = value of assets leased × expected yield · Sanity check = rent ÷ EBITDA

Two anchors, because either alone misleads. The yield anchor prices the rent as a return on the capital handed over — plant, fittings, stock, goodwill. The EBITDA check asks what share of the earnings that rent consumes. A rent that looks fair as a yield and takes 80% of EBITDA is a business the tenant cannot run, and it is the number a first-time lessee never works out. This is an indication for a negotiation, not a valuation: an actual affitto d'azienda is a notarised contract and the figure belongs to a professional.

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Frequently asked questions

What yield should I use?

Between about 5% and 10% of the value of what is handed over, depending on sector risk and how much of the value is goodwill rather than physical assets. Goodwill-heavy businesses carry more risk for the tenant and usually justify the lower end.

What goes into the value of assets leased?

Everything the tenant gets use of: plant and equipment, fittings, stock if it transfers, and the goodwill — the customer base, the location, the name. The last one is the contested part of every negotiation.

What share of EBITDA is a reasonable rent?

Below about a third leaves the tenant a business worth running. Above half, they are working for the landlord, and the lease tends not to survive its first bad quarter.

Is this a valuation?

No. It is an opening position for a negotiation. An affitto d'azienda is a notarised contract with inventory schedules, employee transfers and tax consequences — get a commercialista before signing anything.