Calculator

Break-even occupancy calculator

Calculate the occupancy needed to cover expenses and debt.

The short answer

$8,000 of expenses plus $10,800 of debt on $24,000 of potential rent needs 78.333% occupancy to break even.

Break-even occupancy

Break-even occupancy = (operating expenses + debt service) ÷ gross potential rent

Break-even occupancy
78.333%
Show the arithmetic
  • (8000 + 10800) ÷ 24000 = 78.333%
Worked example

$8,000 of expenses plus $10,800 of debt on $24,000 of potential rent needs 78.333% occupancy to break even.

Assumptions
  • Annual figures. Gross potential rent is collections at 100% occupancy.

Every figure is calculated from the values you entered. Nothing is fetched from market data, and this is general information rather than financial, legal or tax advice.

Formula

Break-even occupancy = (operating expenses + debt service) ÷ gross potential rent

What you need

  • Annual operating expenses
  • Annual debt service
  • Annual gross potential rent

Worked example

$8,000 of expenses plus $10,800 of debt on $24,000 of potential rent needs 78.333% occupancy to break even.

Assumptions and units

  • Annual figures. Gross potential rent is collections at 100% occupancy.

Limitations

Every figure is calculated from the values you enter — nothing is estimated from market data. Real outcomes depend on your state, your lease terms and your property. This is general information, not financial, legal or tax advice.

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