Assisted Living Occupancy Break Even Calculator

Assisted living has high fixed labor — breakeven occupancy is 80-90% in most markets.

Units

Revenue / occupied unit

Fixed monthly cost

Variable cost / occ unit

Monthly debt service

Breakeven occupancy %

0.78%

Breakeven units

78.1

Contribution margin / unit

$4,800

How the math works

Breakeven units = (fixed + debt) / (revenue − variable). Occupancy = units / total.

($280k + $95k) / ($6k − $1.2k) = $375k / $4,800 = 78 units = 78% of 100.

How to Use

Enter units.
Enter revenue per occupied unit.
Enter fixed operating costs.
Enter variable cost per occupied unit.
Enter debt service.
Read breakeven occupancy %.

Frequently Asked Questions

Why is AL breakeven high?

Assisted living runs high fixed labor cost: 24/7 nursing coverage, activities directors, dietary staff, maintenance, admin — all required regardless of census. Typical fixed cost: 50-65% of stabilized operating cost. Variable cost (per-resident food, care labor scaling): 25-35%. Unit occupancy below 75% rarely covers fixed cost + debt service. Industry target: 88-92% occupancy stabilized.

Typical cost structure?

Labor (nursing/aides/cooks/admin): 45-60% of revenue. Food: 6-10%. Activities: 2-4%. Utilities: 4-7%. Maintenance: 3-5%. Insurance: 2-4%. Property tax: 3-6%. Management fee: 4-6%. Marketing: 2-4%. Total operating margin: 25-35%. Debt service coverage target: 1.20-1.35x DSCR. Below breakeven for 2+ consecutive quarters = lender concern.

Census management?

Move-in pace vs move-out pace is daily management focus. Monthly move-in goal: 3-5% of capacity (4-5 units/month for 100-unit property). Move-out: 3-4% mortality/transfer rate monthly. Net absorption: +1-2 units/month in healthy market, flat in stable, negative in declining markets. Preleasing pipeline (tours, deposits, reservations): 2-3× monthly move-in goal.

Recovery from low occupancy?

Lease-up from 60% to 90%: 12-24 months typical. Marketing spend elevated (4-7% vs stabilized 2-3%). Rate concessions: 1-3 months free, reduced entrance fees. Community outreach (referrals from hospitals, physicians, family advisors). Improving NOI: $100-300k per 5-percentage-point occupancy gain on 100-unit property. Distressed AL: 40-70% occupied, often requires operator change + capex refresh.