How to Calculate Break Even Ratio

Break Even Ratio – Measures what occupancy percentage of the property must be rented to cover all expenses including debt service.

   Loan Principal & Interest
+ Taxes
+ Insurance
+ Property Management
+ HOA
+ Other Expenses
÷ Gross Income
------------------------------
= Break Even Ratio


   $82,497
+ $55,881
+ $12,612
+ $20,428
+ $0
+ $54,108
÷ $268,800
----------
= 83.9%