$800k property
$4,444/mo
With 20% down, 5% rate, $500 expenses, and 5% vacancy.
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Mortgage calculator
Break-even rent is the gross monthly rent a rental property needs before it stops losing cash. In Canada, mortgage payments should use semi-annual compounding, and province-specific property tax and closing costs can move the result.
Verified: 2026-07-29 · Author: Sunny
Break-even rent is the gross rent needed to cover mortgage payment, operating expenses, and vacancy. With a $800,000 purchase, 20% down, a 5% mortgage rate, $500 monthly expenses, and 5% vacancy, the break-even rent is about $4,444 per month.
Enter your own numbers here, then use the examples and notes below to check the result.
| Scenario | Result | Interpretation |
|---|---|---|
| $800k property, 20% down | $4,444/mo break-even rent | A $3,000 rent assumption would still be materially cash-flow negative. |
| $600k property, 20% down | $3,518/mo break-even rent | $2,800 rent is closer, but not enough under these assumptions. |
| $400k property, 20% down | $2,380/mo break-even rent | $2,200 rent is close to break-even before tax and capital reserves. |
$4,444/mo
With 20% down, 5% rate, $500 expenses, and 5% vacancy.
$3,518/mo
With 20% down, 5% rate, $550 expenses, and 5% vacancy.
$2,380/mo
With 20% down, 5% rate, $400 expenses, and 5% vacancy.
Break-even rent = (mortgage payment + operating expenses) / (1 - vacancy rate)
Operating expenses should include property tax, insurance, maintenance, management, utilities paid by the landlord, and condo fees where applicable.
| Metric | Formula | Use when |
|---|---|---|
| Break-even rent | (payment + expenses) / occupied share | Find the rent needed for zero monthly cash flow. |
| Rent for target DSCR | (payment x target DSCR + expenses) / occupied share | Estimate the rent needed for lender comfort. |
| Cash flow | effective rent - payment - expenses | Measure monthly surplus or shortfall. |
No. Break-even rent is what your property needs based on your costs. Market rent is what tenants are willing to pay for a comparable unit.
Yes. If you expect 5% vacancy, the occupied months need to carry the empty period, so required gross rent is higher than payment plus expenses.
This page uses the shared usecos calculator engine, visible formulas, and the source links below. Verified on 2026-07-29.