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Breakeven occupancy calculator
Estimate how much rental occupancy you need to pay operating expenses and scheduled debt service. Use annual amounts and hold your expense estimate fixed.
Rental income at 100% occupancy, before vacancy, concessions and credit loss.
Enter positive costs. Exclude debt service, depreciation and income taxes.
Total scheduled principal and interest for all loans, using the same year as NOI.
Income available regardless of rental occupancy. Use zero if it falls with occupancy.
Breakeven occupancy
A result above 100% means full rent collection cannot cover these costs. A negative result means other income alone exceeds them. Capital spending and owner distributions are excluded.
Example amounts are prefilled. Change any field to see your result instantly. Your financial inputs stay in this browser.
How to calculate breakeven occupancy
Operating breakeven occupancy estimates the rental income needed to cover operating expenses and loan payments after other income. It assumes collected rent moves in direct proportion to occupancy, while entered expenses and other income stay fixed. It is an economic occupancy estimate, not a count of leased units.
Breakeven occupancy = (operating expenses + debt service − other income) / gross potential rent × 100
Worked example
With $1,000,000 in gross potential rent, $350,000 in operating expenses, $400,000 in debt service and $50,000 in other income, breakeven occupancy is ($350,000 + $400,000 − $50,000) / $1,000,000 × 100 = 70.00%.
Frequently asked questions
What does 70% breakeven occupancy mean?
Under the entered assumptions, collecting 70% of gross potential rent covers operating expenses and scheduled debt service after other income. Concessions and unpaid rent can make physical occupancy higher than economic occupancy.
Can breakeven occupancy exceed 100%?
Yes. A result above 100% means even full gross potential rent plus other income is insufficient. The calculator shows the result without capping it.
Do expenses change as occupancy changes?
Some do. This simple estimate holds expenses and other income fixed. Use a full property model when management fees, utilities, reimbursements or other revenue vary materially with occupancy.
See how the full model works in our engine methodology or review a worked property example.