Rental Occupancy Cash Break-Even Calculator

How the rental occupancy cash break-even calculator works

Full-period rent capacity means collected revenue at 100% effective utilization. The variable percentage applies to collected rent. Cash obligations add fixed operating costs, debt payments and reserve funding. The continuous break-even utilization divides those obligations by rent capacity after the variable-cost fraction.

The sufficient collected-rent amount divides obligations by one minus the variable percentage and rounds upward to cents. The utilization ratio is continuous and may exceed 100%, indicating the entered capacity is insufficient under this model. Zero positive contribution capacity makes the ratio undefined when obligations are positive.

This is a cash test after debt service and reserves, distinct from pre-financing NOI. It does not estimate market rent, customer collection, physical vacancy or legal occupancy. The scenario utilization combines the revenue effects you choose to represent; it is not a forecast or lender qualification test.

Worked example

Annual capacity of 120,000 less 20% variable cost leaves 96,000 at full utilization. Fixed costs 30,000, debt 24,000 and reserves 6,000 total 60,000, requiring 62.5% continuous utilization. At 75%, modeled cash after obligations is 12,000. Raising debt payments to 36,000 raises break-even utilization to 75%.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• Fannie Mae: property cash-flow and DSCR definition context
• SBA: business cost and financial planning