The quoted monthly rent in $AUD
After all costs including rent and owner salary
Total capital to open (fit-out, equipment, deposits)
5-year lease — full model
Click a card above to compare termsTotal rent commitment
$456,000
$7,600/mo × 60 mo
Total capital at risk
$606,000
fit-out + all rent
Fit-out payback
13 months
months to recover fit-out only
Full break-even
51 months
months to recover all committed capital
Profit by end of term
$720,000
$12,000/mo × 60 mo
Return on commitment
119%
net profit ÷ total committed capital
Net loss if business closes at…
End of Year 1
$370,800
Net loss · Most common failure window
End of Year 2
$135,600
Net loss · After initial ramp-up phase
End of Year 3
+$99,600
In profit · Past typical survival threshold
Loss = fit-out sunk cost + remaining lease obligation − profit earned. Assumes no subletting income, no goodwill on sale. Conservative by design.
3-year vs 5-year — the actual trade-off
A 5-year term commits $182,400 more in rent than a 3-year term. At $12,000/mo net profit, you recover that extra commitment in 16 months.
5-year is worth it when: fit-out cost exceeds $91,200 (one year's rent), and net profit exceeds $6,080/mo. Otherwise, protect yourself with a 12-month break clause inside the 5-year term.
Negotiation note
A 5-year lease with a 12-month break clause is functionally a 1-year lease with 4 optional extension years. If trading assumptions prove wrong, you exit at month 12 with only $91,200 in remaining obligation (vs $364,800 without the clause). This framing typically works on landlords because their preferred outcome is a long-term tenant — the clause is an insurance premium, not a concession.
Why lease term matters
The monthly rent is not the decision. The total commitment is.
At $7,600/month, a 3-year lease commits $273,600 in rent. A 5-year lease commits $456,000. That $182,400 difference is invisible until you sign. This tool makes it visible before you do.
Total committed rent
Monthly rent × lease months. This is your minimum financial obligation from day one, before you serve a single customer. A longer term locks in more obligation even if trading is poor.
Fit-out payback
How many months of net profit it takes to recover your fit-out investment — before you start paying for the rent commitment. A heavy fit-out on a short term means you recover less value per dollar spent.
Full break-even
The month at which cumulative net profit equals fit-out cost plus total rent paid. If this falls inside the lease term, the deal is structurally sound. If it falls outside, you never recover all committed capital in this term.
Year 1 loss scenario
If trading is worse than modelled and the business closes at the 12-month mark, this is the net loss: sunk fit-out plus remaining lease obligation minus profit earned. The number most operators never calculate before signing.
Important. This tool uses linear profit projections. Real businesses have ramp-up periods, seasonal variation, and growth curves that this model does not capture. The loss scenarios assume no subletting income, no goodwill on sale of the business, and no landlord negotiation on early termination. These are intentionally conservative. Verify all figures with your accountant before signing any commercial lease.
Numbers look right. Now verify the address.
A lease term calculator tells you the cost of the commitment. A Locatalyze report tells you whether the address can generate the revenue to justify it — with competitor data, foot traffic signals, and a GO / CAUTION / NO verdict.