Multi-Family Development Break-Even: $124K Monthly Revenue

Fixed costs $15.0K Monthly overhead

Contribution margin 89% After variable costs

Break-even revenue $16.9K Monthly target

Break-even timing Month 30 Model breakeven

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a multi-family development pipeline.

Lean Base Full

Monthly revenue Monthly rent and fee revenue sets the pool that covers variable and fixed costs. $ Low rent High rent Variable expenses These are the costs that rise with occupied space and leasing activity. $ Lower costs Higher costs

Money available to cover fixed costs $300,300 $330,000 revenue - $29,700 variable expenses

Margin ratio

91%

Covers fixed costs

Yes

Fixed monthly costs This is the overhead base that contribution margin must cover each month. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed, variable, semi-variable, or semi-fixed in this rental development model?

Cost classification

The Month 30 break-even only holds if stable overhead, revenue-linked expenses, and staffing step-ups are separated. Treating construction spend as monthly operating break-even will overstate the sales target and hide cash timing risk.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $8,000 per month as baseline overhead from Month 1 through Month 60.	Linking office rent to occupancy instead of keeping it stable.
Utilities & Internet	Fixed	Use $1,200 per month for corporate office support within the normal planning range.	Mixing office utilities with property-level usage tied to occupancy.
Software Subscriptions	Fixed	Use $1,500 per month as recurring overhead before contribution margin is tested.	Dropping software from break-even because it is not site-specific.
Legal & Accounting Fees	Fixed	Use $2,500 per month as recurring professional overhead in operating break-even.	Treating recurring compliance work like one-time acquisition due diligence.
Property Operating Expenses	Variable	Model as 8.0% of revenue in the first year, declining to 6.0% by the fifth year.	Using construction budget as the operating expense driver.
Leasing & Marketing Costs	Variable	Model as 3.0% of revenue in the first year, declining to 1.0% by the fifth year.	Holding leasing spend flat while rental revenue changes by project.
Rented Site Commitments	Semi-fixed	Add monthly commitments when rented projects start: $12,000, $15,000, and $18,000.	Smoothing site rent across all months instead of stepping it in by project.
Staff Salaries	Semi-fixed	Step payroll when headcount changes, including Project Manager FTEs rising from 1.0 to 2.0 in Year 3.	Modeling salaries as a percentage of revenue instead of capacity-driven payroll.

How does break-even change from a lean lease-up to a fully delivered portfolio?

Scenario table

Break-even gets easier as more assets come online and the rent roll fills in, because fixed overhead stays largely committed while revenue rises. Revenue is the operating proxy here since unit count and occupancy aren’t provided.

Planning assumptions only; actual results will move with lease-up timing and occupancy.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean lease-up	$850K	$85K	$853K	90%	-$88K	Still below break-even; one slip in lease-up widens the gap.
Month 30 base case	$3.34M	$334K	$1.13M	90%	$1.88M	This is the break-even pivot, with a solid cushion above fixed overhead.
Fully delivered portfolio	$5.56M	$556K	$1.13M	90%	$3.88M	Best cushion, but only if delivery timing and occupancy hold.

What breaks the break-even plan if revenue slips or costs creep up?

Stress test

Month 30 still shows a cushion, but the plan is most exposed to a slower lease-up and any fixed-cost creep. The sharpest warning is the early ramp: at $85K revenue and $853K fixed costs, the model already shows an $88K gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change at Month 30; $330K revenue, 90% variable expenses, and $1.125M fixed costs.	$330K	$1,878K cushion	Month 30 still has room, but the first miss matters.
Revenue shortfall	Revenue falls 10% to $297K.	$297K	$1,578K cushion	A 10% miss cuts the buffer fast.
Fixed-cost increase	Fixed costs rise 10% to $1,238K.	$330K	$1,766K cushion	Overhead creep trims the margin.
Margin pressure	Variable expenses rise to 120% of plan.	$330K	$1,779K cushion	Higher operating drag leaves less room.
Combined pressure	Revenue falls to $85K and fixed costs sit at $853K.	$85K	$88K gap	The launch ramp is already underwater.

What must the founder verify before the first acquisition and build?

Founder checklist

This checklist tests whether each site, build, and hire can hold up to the Month 30 break-even point. The warning light is the Month 45 cash trough of about negative $50.7M, so lease-up proof and cash reserves have to hold first.

1Site controlMonth 3-23

Confirm control before the Month 3, 7, 11, 15, 20, and 23 acquisitions, and make sure the $9.7M owned buys plus $45K rented commitments still fit the plan.

2Lease-upBefore Month 30

Prove pre-leasing before revenue starts, because the model does not reach break-even until Month 30.

3Fixed load$15.0K/mo

Keep office rent, utilities, software, legal, insurance, and travel at the $15.0K monthly base so fixed overhead does not outrun early occupancy.

4Variable load11.0% Y1

Check that each project clears the 11.0% Year 1 variable load, since contribution has to cover the fixed team cost too.

5Build plan$48.0M

Lock bids against the $48.0M total construction budget and line the 9- to 15-month build windows up with the Year 1 and Year 3 staffing ramp.

6Runway-$50.7M

Hold enough cash for the Month 45 trough of about negative $50.7M, and do not spend ahead of permits, utilities, vendor contracts, or lease-up proof.