Rental property

Break-even Occupancy Calculator

Calculate the occupancy required for rental income to cover operating costs and debt service.

What this calculator estimates

Find the occupancy rate needed to cover costs. It combines the inputs below to produce Break-even occupancy. 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 82.8%. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.

Inputs and assumptions

• Number of rental units — sample input: 4 units
• Average monthly rent per unit — sample input: 1600 currency units
• Monthly other income — optional — sample input: 0 currency units
• Monthly operating expenses — sample input: 2500 currency units
• Monthly debt service — sample input: 2800 currency units

How to interpret the result

Review cash flow together with reserves, vacancy and financing risk. Compare a conservative case with an expected case and keep a record of the assumptions used.

Common mistake to avoid

Do not treat gross rent as net operating income. Local definitions, taxes, lending practices and measurement requirements can materially change the result.

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Reviewed 2026-09-08.