--BREAK EVEN OCCUPANCY RATE CALCULATOR--

The Break-Even Occupancy Rate Calculator is a financial tool used to determine the occupancy level at which a property generates enough income to cover its operating expenses and debt service. 

Here's a breakdown of how it works:

1. Total Operating Expenses: Users input the total operating expenses associated with the property. This includes expenses such as maintenance, utilities, property management fees, and insurance.
2. Total Debt Service: Users input the total debt service for the property. This includes mortgage payments, interest, and other debt-related expenses.
3. Average Rent per Unit: Users input the average rent per unit of the property. This represents the amount of rental income generated by each unit on average.

1. Break-Even Occupancy Rate: The calculator computes the break-even occupancy rate using the formula: Break-Even Occupancy Rate=(Total Operating Expenses/Annual Rental Income)+(Total Debt Service/Annual Rental Income)  
   • The first term represents the proportion of rental income needed to cover operating expenses.
   • The second term represents the proportion of rental income needed to cover debt service.

Once the calculation is complete, the calculator displays the break-even occupancy rate as a percentage. This value represents the minimum occupancy level required for the property to generate enough income to cover its operating expenses and debt service.

• Higher Break-Even Occupancy Rate: A higher break-even occupancy rate indicates that the property requires a higher level of occupancy to cover its expenses and debt service, which may pose a higher risk to investors.
• Lower Break-Even Occupancy Rate: Conversely, a lower break-even occupancy rate indicates that the property requires a lower level of occupancy to cover its expenses and debt service, which may be more favorable for investors as it provides a greater margin of safety.

In summary, the Break-Even Occupancy Rate Calculator helps property owners, investors, and lenders assess the financial viability of a commercial property by determining the minimum occupancy level required for the property to break even and cover its expenses and debt service.