STR Break Even Occupancy Calculator

Break-even occupancy ensures property covers expenses.

Monthly expenses

Mortgage payment

Nightly rate

Cleaning per night

Available nights/month

Break-even occupancy %

1.04%

Break-even nights

31.2

Monthly fixed costs

$6,300

How the math works

Fixed = expenses + mortgage. Night margin = rate − cleaning. Break-even nights = fixed / margin.

$2.5k + $3.8k = $6.3k fixed. $220 − $18 = $202 margin. $6.3k / $202 = 31 nights needed > 30 = over 100% break-even.

How to Use

Enter monthly expenses.
Enter mortgage payment.
Enter nightly rate.
Enter cleaning cost per night.
Read break-even occupancy %.

Frequently Asked Questions

Typical break-evens?

Strong market STR: 50-65% break-even occupancy. Mid market: 65-75%. Tight market: 75-85%. Above 85% break-even = risky. High fixed costs (mortgage, HOA, insurance) push break-even up. Small/paid-off properties: 30-40% break-even.

Improvement?

Reduce fixed costs (refi to lower rate). Increase nightly rate (dynamic pricing). Reduce turnover frequency (longer average stays). Reduce cleaning cost (outsourcing audit). Each reduces break-even by 3-8%.

Safety margin?

Actual occupancy should be 15-25% above break-even. Less than 10% buffer = risk. Negative margin = losing money. Monthly review of occupancy vs break-even essential for active management.

How do institutional LPs use this?

Institutional LPs expect sensitivity tables at every underwriting — base case plus at least two stress scenarios. Submit this output alongside traditional pro formas. LPs read quickly for two things: does the base case clear target IRR, and does the stress case produce positive equity multiple. If both yes, deal is investable. If stress goes negative, more equity or a lower purchase price is needed.