Calculator · break-even occupancy calculator
Break-even occupancy calculator
Find the occupancy a facility must hold to cover every operating cost and its mortgage.
Calculator
Results
Enter the figures above to see a result.
Estimates only — not investment advice.
Formula
Break-even occupancy
Break-even occupancy % = (Operating expenses + Debt service) ÷ Gross potential revenue × 100
Gross potential revenue is what the facility would earn if every unit rented at market rate. Here it is entered per month and annualized (× 12).
Worked example
A facility has $95,000 in annual operating expenses, $120,000 in annual debt service, and could bill $30,000 per month at full occupancy ($360,000/yr). Break-even = ($95,000 + $120,000) ÷ $360,000 × 100 = 59.7%. The facility covers all costs at roughly 60% occupancy, leaving a healthy 40% margin of safety.