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Rental Break-Even Occupancy Calculator

Is the practice earning what it should for the hours it spends?

Occupancy needed to cover operating expenses and debt service, and the cushion against your expected occupancy.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Break-even occupancy
60.00%
Occupancy that covers expenses and debt service
Break-even income needed
$90,000
Cushion against expected occupancy
32.00%
Drawn to one scale
Break-even income needed$90,000
Cash flow at expected occupancy$48,000
All results
MeasureResult
Break-even occupancy60.00%
Break-even income needed$90,000
Cushion against expected occupancy32.00%
Cash flow at expected occupancy$48,000
How this was worked out
Work shownrecomputed as you type
Break-even occupancy = (operating expenses + debt service) / potential gross income

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Break-even occupancy = (operating expenses + debt service) / potential gross income

How it works

Break-even occupancy is the share of potential rent you must collect before the property stops losing money. Lenders watch it as a measure of risk: the lower the number, the more vacancy the property can take.

This treats all expenses as fixed. In practice some costs, such as management fees, move with occupancy. Add capital reserves to operating expenses if you fund them.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What is a good break-even?

Lower is safer. Lenders set their own targets.

Does it include rent growth?

No. It is a single-year view.

Is it the same as DSCR?

It is related. DSCR above 1.0 means break-even occupancy is below the actual occupancy.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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