Commercial real estate

Commercial Break-even Rent Calculator

Find the annual rent per area unit required to meet a target NOI. Replace every default with figures that apply to your property and location.

What this calculator estimates

Find the annual rent per area unit required to meet a target NOI. It combines the inputs below to produce Required annual rent per area unit. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.

Worked example

Using the displayed sample assumptions, the calculator produces $39. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Rentable area — sample input: 10000 sq. ft.
• Annual other income — sample input: 25000 currency units
• Annual operating expenses — sample input: 180000 currency units
• Target net operating income — sample input: 220000 currency units
• Vacancy allowance — sample input: 5 %

How to interpret the result

Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.