Break-Even Rent Calculator
Find the minimum monthly rent to cover all your landlord costs. Accounts for mortgage, property tax, insurance, maintenance, vacancy, and property management — so you never lose money on a rental.
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sqft
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Break-Even Monthly Rent
$2,579
$379 above market — challenging
Rent per Sq Ft
$1.72
Market Rent
$2,200
Monthly Cash Flow at Market
-$360
Total Monthly Costs
$2,450
Note: Break-even rent accounts for 5% vacancy and self-management. You must charge this rent to cover all costs even during vacancies.
Mortgage: $1,800
Property Tax: $300
Insurance: $100
Maintenance: $250
Advanced
Expense Breakdown & Cash Flow Targets
Itemized costs, what rent achieves each cash flow target, vacancy impact
Add additional expenses to see the full picture. These are added to your core costs above.
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Mortgage
$1,800
Monthly P&I
Property Tax
$300
Monthly allocation
Insurance
$100
Monthly allocation
Maintenance (1%)
$250
Per month
Additional Costs
$100
HOA + utilities + capex
Full Break-Even Rent
$2,684
With all expenses included
Pro
Market Analysis & Long-Term Strategy
Comp analysis, appreciation strategy, and rent ramp-up plan
Enter comparable rents in your market to see if break-even is achievable.
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Average Market Rent
$2,150
From your comps
Break-Even Rent
$2,579
Minimum needed
Market Gap
$429
Above market — difficult
Cash Flow at Market Avg
-$408
Monthly profit/loss
Your break-even rent of $2,579 is $429 above what the market will bear. Consider a larger down payment, lower purchase price, or accepting negative cash flow with appreciation upside.
How to Use This Break-Even Rent Calculator
This calculator is built for landlords — it answers the question: "What is the absolute minimum rent I need to charge to not lose money?" Enter your costs and the calculator does the rest:
- Property Value: Used to estimate maintenance costs using the 1% rule ($300K property = $3,000/year = $250/month for repairs).
- Monthly Mortgage Payment: Your principal + interest. If taxes and insurance are escrowed, enter only P&I here and fill in the tax and insurance fields separately.
- Vacancy Rate: The percentage of time the property sits empty. Even 5% vacancy (18 days/year) meaningfully raises your break-even rent — because you still pay the mortgage during vacant months.
- Property Management Fee: If a PM collects 10% of rent, your effective income is only 90% — so you need to charge more to net the same amount.
- Market Rent: What comparable properties rent for. The calculator tells you whether your break-even is above or below what tenants will pay.
The Break-Even Rent Formula
Total Monthly Costs = Mortgage + (Annual Tax ÷ 12) + (Annual Insurance ÷ 12) + (Property Value × 1% ÷ 12)
Break-Even Rent = Total Monthly Costs ÷ [(1 − Vacancy%) × (1 − PM Fee%)]
Example: $1,800 mortgage + $300 tax + $100 insurance + $250 maintenance = $2,450 total costs
With 5% vacancy and 10% PM fee:
Break-Even = $2,450 ÷ (0.95 × 0.90) = $2,450 ÷ 0.855 = $2,865/month
Break-Even Rent = Total Monthly Costs ÷ [(1 − Vacancy%) × (1 − PM Fee%)]
Example: $1,800 mortgage + $300 tax + $100 insurance + $250 maintenance = $2,450 total costs
With 5% vacancy and 10% PM fee:
Break-Even = $2,450 ÷ (0.95 × 0.90) = $2,450 ÷ 0.855 = $2,865/month
The vacancy and PM fee adjustments are critical. Many landlords calculate break-even as simply "my mortgage payment + expenses" and forget that they must charge enough to cover those costs even when the unit is vacant and after the PM takes their cut.
Example: Does This Rental Property Make Sense?
Scenario: $300K Single-Family Home
| Mortgage (20% down, 7%) | $1,597/mo |
| Property Tax | $300/mo |
| Insurance | $100/mo |
| Maintenance (1%) | $250/mo |
| Total Fixed Costs | $2,247/mo |
| Vacancy Adjustment (5%) | ÷ 0.95 |
| PM Fee Adjustment (10%) | ÷ 0.90 |
| Break-Even Rent | $2,629/mo |
| Market Rent (comparables) | $2,400/mo |
| Result | $229/mo negative cash flow |
This landlord needs $2,629 to break even but the market only supports $2,400. Options: self-manage (saves 10% PM fee), accept negative cash flow if appreciation compensates, or negotiate a lower purchase price.
Frequently Asked Questions
Because you must collect enough rent during occupied months to cover costs during vacant months too. If your vacancy rate is 5% and costs are $2,000/month, you need to earn $2,000 × 12 = $24,000/year but only have 11.4 occupied months to do it — so rent must be at least $2,105/month. Add PM fees on top and the required rent climbs further.
Yes — include the full mortgage payment (principal + interest) for cash flow break-even purposes. While principal paydown builds equity (it's not a "lost" expense), you still need the cash each month to make the payment. Cash flow break-even and wealth-building break-even are different. This calculator focuses on cash flow — the rent you need to never reach into your own pocket.
The 1% rule says monthly rent should equal at least 1% of the purchase price (e.g., $300K property = $3,000/month rent). Separately, budget 1% of property value per year for maintenance and repairs. These are rough guidelines — expensive coastal markets rarely meet the rent 1% rule, while Midwest markets often exceed it.
Not necessarily. In high-appreciation markets (San Francisco, NYC, coastal cities), landlords routinely accept $200–$500/month negative cash flow because property values appreciate 5–8% annually. A $500K property appreciating at 6% gains $30,000/year — far exceeding a $3,000/year cash flow deficit. Use the Appreciation Strategy tab to model total returns including appreciation.
The standard assumption is 5–8% annual vacancy, which is roughly 18–29 days per year. For a long-term single-family rental with good tenants, you may experience vacancy only during tenant turnover (once every 2–3 years). In that case, annual vacancy is effectively one month's rent every 2–3 years, or about 3–4%. In high-turnover areas or weaker markets, budget 8–10%.