Lease Up Breakeven Date Calculator

Breakeven marks end of interest reserve burn.

Total units

Monthly rent per unit

Units leased per month

Monthly OpEx

Monthly debt service

Breakeven month

6.5

Units occupied at breakeven

Occupancy % at breakeven

0.5%

How the math works

Target revenue = OpEx + debt service. Units needed = target / rent. Breakeven month = units / velocity.

$85k + $120k = $205k target. / $2.1k = 98 units. / 15 units/mo = 6.5 months. 49% occupancy at breakeven.

How to Use

Enter units.
Enter monthly rent.
Enter monthly lease-up (units).
Enter monthly OpEx.
Enter monthly debt service.
Read breakeven month.

Frequently Asked Questions

Why track breakeven?

Breakeven month = first month where rent NOI ≥ debt service. Before: interest reserve or sponsor pref fund burn. After: property self-sustains. Critical milestone for lender and limited partner communication.

Typical timing?

250-unit multifamily, 15 units/mo lease-up, starts post-CO: breakeven month ~12-15. Class A luxury: 18-24 (slower absorption). Affordable housing: 6-9 (waitlist driven). Commercial: typically 24-36 months due to larger tenant size.

Acceleration?

Concession-heavy leasing (first-month free). Broker incentives. Early-signer discount. Amenity preview events. Social media marketing. 1-2 months acceleration typically saves $300k-500k on a mid-size multifamily project.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.