ADAM J. KAROL
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Calculators

Break-Even Ratio Calculator

Before asking how much a property can make, ask how little occupancy it can survive on — that's the number that tells you how much room for error you actually have.

72.7%

Break-even occupancy

This is the occupancy rate needed just to cover operating expenses and debt service — it assumes expenses stay roughly fixed regardless of occupancy, which is a simplification real properties don't always follow exactly.

These calculators provide estimates for educational purposes only — they are not an appraisal, a loan quote, or tax advice. Real underwriting, valuation, and 1031 exchange outcomes depend on your specific deal, lender, and a qualified intermediary/CPA — treat these as a starting point for a conversation, not a final number.

Want a real read on a specific deal? Talk to me directly.

Frequently Asked

What's a healthy break-even ratio?+

Lower is safer — a ratio in the 60-75% range gives real cushion for vacancy or unexpected expenses. A ratio above 85-90% means the property is exposed to even a small dip in occupancy.

Does this ratio change if I add more debt?+

Yes — more leverage raises annual debt service, which raises the break-even ratio and thins your cushion. It's one of the tradeoffs of financing a larger share of the purchase price.

FL DBPR Lic. SL3572236 · NAI Southcoast