Breakeven Occupancy Calculator
79.17%
Formula: (OpEx + Debt) / Income
Formula: Breakeven % = ((Operating Expenses + Debt Service) ÷ Potential Gross Income) × 100
🏢 Understanding Breakeven Occupancy
Your 79.17% breakeven occupancy is within a healthy range.
- Below 70%: Excellent cushion - property can handle significant vacancy.
- 70-80%: Healthy range - standard for most multifamily properties.
- 80-85%: Tight - limited room for vacancy or rent drops.
- Above 85%: Risky - vulnerable to market changes.
💡 Pro Tip: For multifamily, aim for breakeven occupancy below 80%. This gives you buffer for normal vacancy (5-8%), rent collection issues, and unexpected expenses. If your breakeven is 85%+, consider reducing debt or finding ways to increase income.
What is Breakeven Occupancy?
Breakeven occupancy is the point at which a property's income is exactly equal to its expenses (including both operating expenses and debt service). It represents the minimum occupancy level required for the property to avoid losing money.
This metric is especially critical for properties with multiple tenants, such as multifamily, office, and retail centers. A property with a low breakeven point is more resilient to market downturns, while a high breakeven point indicates very little margin for error.