Break Even Ratio (BER)

The minimum occupancy needed to cover all operating expenses and loan payments.

Cindy Bellford avatar
Written by Cindy Bellford
Updated over a week ago

What Is It?

A ratio that compares a property's yearly operating expenses and debt service (loan payments) to its yearly gross rent.

The break even ratio shows the minimum percentage of occupancy needed to cover all operating expenses and debt service obligations for a rental property.

How Is It Calculated?

Break even ratio formula

You can learn more about the Break Even Ratio on our blog.

Did this answer your question?