Real Estate & Mortgage
Commercial Break-Even Occupancy
Find the occupancy rate a commercial property needs to cover operating expenses and debt service.
Your inputs
Change any value to update the result instantly.
Break-even occupancy
80%
Total fixed obligations
4,00,000
Gross potential income
5,00,000
Cushion above breakeven
20%
A break-even occupancy at or below ~85% typically gives a healthy margin of safety.
Formula and working
Break-even occupancy = (Operating expenses + Debt service) ÷ Gross potential income
- 1
Collect the inputs
Gross potential income (100% occupied) = 500,000; Annual operating expenses = 180,000; Annual debt service = 220,000
- 2
Apply the formula
Break-even occupancy = (Operating expenses + Debt service) ÷ Gross potential income
- 3
Result
Break-even occupancy = 80 %
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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