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How to use
- Enter Monthly operating costs.
- Enter Monthly debt service.
- Enter Occupied units.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Break-even rent per unit = total monthly costs ÷ occupied units
Example
Operating costs of 18,000 plus 12,000 debt service across 10 occupied units mean 30,000 total and 3,000 break-even rent per unit.
Important notes
If vacancy is expected, use expected occupied units rather than total units. A margin above break-even may be needed for surprises and profit.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Total costs | 18000 + 12000 | 30,000 |
| Break-even rent per unit | 30000 ÷ 10 | 3,000 |
Frequently asked questions
Does this rent guarantee profit?
No. It only covers the costs entered mathematically; missing costs or higher vacancy change the result.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.