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Breakeven Occupancy Calculator

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✖Total Operating Expenses represent the aggregate cost incurred by a business to maintain its day-to-day operations.ⓘ Total Operating Expenses [TOE]			+10% -10%
✖Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis.ⓘ Annual Debt Service [ADS]			+10% -10%
✖Potential Gross Income is the total annual rental income that the property could generate if fully leased at market rental rates.ⓘ Potential Gross Income [PGI]			+10% -10%

✖Breakeven Occupancy Ratio is the minimum occupancy rate threshold of a property to ensure its operating expenses and debt service obligations are met, expressed as a percentage.ⓘ Breakeven Occupancy [BOR]

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Breakeven Occupancy Solution

STEP 0: Pre-Calculation Summary

Formula Used

Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income
BOR = (TOE+ADS)/PGI
This formula uses 4 Variables

Variables Used

Breakeven Occupancy Ratio - Breakeven Occupancy Ratio is the minimum occupancy rate threshold of a property to ensure its operating expenses and debt service obligations are met, expressed as a percentage.
Total Operating Expenses - Total Operating Expenses represent the aggregate cost incurred by a business to maintain its day-to-day operations.
Annual Debt Service - Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis.
Potential Gross Income - Potential Gross Income is the total annual rental income that the property could generate if fully leased at market rental rates.

STEP 1: Convert Input(s) to Base Unit

Total Operating Expenses: 45000 --> No Conversion Required
Annual Debt Service: 803200 --> No Conversion Required
Potential Gross Income: 58000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

BOR = (TOE+ADS)/PGI --> (45000+803200)/58000

Evaluating ... ...

BOR = 14.6241379310345

STEP 3: Convert Result to Output's Unit

14.6241379310345 --> No Conversion Required

FINAL ANSWER

14.6241379310345 ≈ 14.62414 <-- Breakeven Occupancy Ratio

(Calculation completed in 00.004 seconds)

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< Debt Management Calculators

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LaTeX Go Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings

Debt Service Coverage Ratio

LaTeX Go Debt Service Coverage Ratio = Net Operating Income/Annual Debt

Overhead Rate

LaTeX Go Overhead Rate = Overhead Costs/Revenue

Breakeven Occupancy Formula

LaTeX Go

Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income
BOR = (TOE+ADS)/PGI

What is Breakeven Occupancy?

The Breakeven Occupancy Ratio indicates the percentage of the property's rentable space that needs to be occupied in order to cover all operating expenses and debt service obligations. A Breakeven Occupancy Ratio above 100% means that the property requires more than full occupancy to break even, while a ratio below 100% means that the property can break even with less than full occupancy.
This metric is useful for property owners, investors, and lenders to assess the financial feasibility and risk associated with a real estate investment. It helps determine the level of occupancy needed to generate sufficient cash flow to cover expenses and debt service, thereby ensuring the property's financial viability.

How to Calculate Breakeven Occupancy?

Breakeven Occupancy calculator uses Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income to calculate the Breakeven Occupancy Ratio, The Breakeven Occupancy is a financial metric used in real estate to determine the minimum level of occupancy required for a property to cover all its operating expenses and debt service obligations, thereby breaking even financially. Breakeven Occupancy Ratio is denoted by BOR symbol.

How to calculate Breakeven Occupancy using this online calculator? To use this online calculator for Breakeven Occupancy, enter Total Operating Expenses (TOE), Annual Debt Service (ADS) & Potential Gross Income (PGI) and hit the calculate button. Here is how the Breakeven Occupancy calculation can be explained with given input values -> 14.62069 = (45000+803200)/58000.

FAQ

What is Breakeven Occupancy?

The Breakeven Occupancy is a financial metric used in real estate to determine the minimum level of occupancy required for a property to cover all its operating expenses and debt service obligations, thereby breaking even financially and is represented as BOR = (TOE+ADS)/PGI or Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income. Total Operating Expenses represent the aggregate cost incurred by a business to maintain its day-to-day operations, Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis & Potential Gross Income is the total annual rental income that the property could generate if fully leased at market rental rates.

How to calculate Breakeven Occupancy?

The Breakeven Occupancy is a financial metric used in real estate to determine the minimum level of occupancy required for a property to cover all its operating expenses and debt service obligations, thereby breaking even financially is calculated using Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income. To calculate Breakeven Occupancy, you need Total Operating Expenses (TOE), Annual Debt Service (ADS) & Potential Gross Income (PGI). With our tool, you need to enter the respective value for Total Operating Expenses, Annual Debt Service & Potential Gross Income and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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