Break Even Rent
Calculator

Break-even rent is the minimum monthly rent needed to cover all property expenses — mortgage payment, taxes, insurance, maintenance, vacancy allowance, and management — with zero cash flow left over. Charging exactly this amount means the property neither makes nor loses money each month.

Comparing break-even rent to achievable market rent immediately shows your cash flow margin — how much cushion you have if a tenant vacates, a repair comes up, or the market softens. A market rent only slightly above break-even leaves little room for error.

It should — a proper break-even calculation includes an assumed vacancy rate (commonly 5-8%) as one of the costs to be covered, since real-world occupancy is never guaranteed to be 100%. Leaving vacancy out understates your true break-even point.

A financed property has a much higher break-even rent than the same property bought in cash, because the mortgage payment (principal and interest) is a large recurring cost that a cash buyer doesn't have. This is why break-even rent is highly sensitive to your down payment size and loan terms.

Not necessarily — it means the property is currently cash-flow negative at market rent, but the right response depends on your goals: you might hold for anticipated appreciation, rent increases, or a future refinance at a better rate, or you might indeed decide the numbers don't work for your strategy. Break-even rent is a diagnostic, not an automatic sell signal.