Self Storage Occupancy Break Even Calculator

Self storage has low variable cost — breakeven occupancy is typically 55-70%.

Total units

Avg rent / unit / month

Fixed cost / month

Variable cost / occ unit

Debt service / month

Breakeven occupancy %

0.69%

Breakeven units

277

Contribution / unit

$137

How the math works

Breakeven units = (fixed + debt) / (rent − variable).

($16k + $22k) / ($145 − $8) = $38k / $137 = 277 units = 69% of 400.

How to Use

Enter total units.
Enter avg rent per unit.
Enter fixed monthly cost.
Enter variable cost per occupied unit.
Enter debt service.
Read breakeven occupancy.

Frequently Asked Questions

Why is storage breakeven low?

Self storage has among lowest variable cost in commercial real estate. Fixed cost: admin staff, utilities, insurance, property tax, capex — 55-70% of operating cost. Variable (per-unit cost: cleaning supplies, marketing attribution, no labor per tenant): 10-20%. Remaining 10-30% is debt service. Breakeven occupancy: 50-65% typical stabilized property. Well-managed: 85-95% occupancy = fat margins.

Typical operating margin?

Stabilized self-storage NOI margin: 60-75% of revenue (one of the best asset classes). Small-operator: 55-65% margin. Large REIT-operated: 70-78% (scale benefits). Compared to multifamily: mf 55-65%, storage 65-75%. Key driver: single FTE can manage 400-700 units vs 1 FTE per 150-200 multifamily units. Low service intensity.

Capex requirements?

Asphalt reseal: $50-100k every 7-10 years. Roof replacement: $50-200k every 20-30 years. Fence/security upgrades: $25-75k every 10-15 years. Office refresh: $25-75k every 7-10 years. Technology (access control, cameras, software): $25-50k every 5-8 years. Annual capex reserve: $0.30-0.60/sqft/yr or 2-3% of revenue.

Breakeven in lease-up?

Ground-up construction: 18-36 months to stabilization. Monthly absorption: 1.5-3% of unit count. Lease-up breakeven reached at 55-65% physical occupancy (month 15-24 typical). Before breakeven: monthly loss of $10-50k typical. Lease-up reserve in construction loan: $500k-2M to cover operating losses + debt service during ramp. Conservative underwriting assumes 24-30 month lease-up.