Student Accommodation Break-Even Analysis: Month 58 Target

Fixed costs $30.8K/mo Year 1 base

Contribution margin 83% Year 1 mix

Break-even revenue $37.1K/mo Cover fixed cost

Break-even timing Month 58 Cash breakeven

Break-even calculator

Use this to test whether monthly rent income covers variable costs and the fixed monthly cost base.

Lean Base Full

Monthly revenue This is the cash you collect each month before direct operating costs. $ Low revenue High revenue Variable expenses These are costs that move with revenue, like upkeep and leasing spend. $ Low costs High costs

Money available to cover fixed costs $30,625 $35,000 revenue - $4,375 variable expenses

Margin ratio

88%

Covers fixed costs

$12,467 short

Fixed monthly costs This is the monthly overhead base that contribution margin must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which student accommodation expenses are fixed, and which move with revenue?

Cost classification

Break-even only works if monthly operating costs stay separate from purchases, construction budgets, and sale proceeds. Here’s the quick rule: recurring overhead goes below the line, while build costs stay out of operating break-even.

Expense	Cost	Break-Even Treatment	Common Mistake
Corporate office rent	Fixed	Include $5,000 per month throughout the operating model.	Tying office rent to occupancy or beds leased.
Property management software	Fixed	Include $1,500 per month as recurring overhead.	Treating the monthly platform fee like launch software capex.
Legal & accounting retainer	Fixed	Include $2,500 per month as recurring professional support.	Dropping the retainer after launch even though it runs through Month 60.
Corporate utilities & internet	Semi-fixed	Start with $800 per month, then review when office or team scale changes.	Modeling it as a percent of rental revenue.
Payroll	Semi-fixed	Model by staffing plan, rising from $20,000 per month in Year 1 to about $37,100 per month from Year 3.	Treating salaries as variable with leases signed.
Property operating variable costs	Variable	Apply against revenue, falling from 12.0% in Year 1 to 8.0% in Year 5.	Using one flat dollar amount despite revenue changes.
Marketing and leasing commissions	Variable	Apply against revenue, falling from 5.0% in Year 1 to 2.5% in Year 5.	Counting leasing commissions as fixed overhead.
Rented-property obligations	Fixed	Include rented property obligations only when active, totaling up to $45,000 per month.	Mixing rental obligations with owned-property purchase costs.

How does break-even change from a lean launch to full lease-up in student accommodation?

Scenario table

Lean launch still runs below overhead, base case clears it, and full lease-up gives the biggest monthly cushion. Even so, the model’s cash break-even is still Month 58, so lease-up speed and cost control both matter.

These are planning assumptions from the model inputs, so they show direction, not a guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$25,000	$4,250	$30,800	83.0%	-$10,050	Still below monthly overhead, so lease-up must improve fast.
Base case	$105,000	$13,125	$47,900	87.5%	$43,975	Clears fixed costs, but the model still needs disciplined leasing to hold cash.
Full lease-up	$219,000	$22,995	$92,900	89.5%	$103,105	Strong monthly cushion, yet the full model still reaches break-even only by Month 58.

What breaks the break-even plan for student accommodation?

Stress test

The plan breaks first on slower lease-up, not small cost noise. At Year 5, about $92.9k of monthly fixed cost plus rent and a 10.5% variable load leave room, but a deep revenue drop can push break-even past the plan.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; $219,000 monthly run-rate, 10.5% variable load, and $92,900 monthly fixed cost plus rent.	$103,800/mo	$115,200 cushion	The plan has room, but lease-up still has to hold.
Revenue shortfall	Occupied beds or rent per bed falls 15%, cutting monthly revenue to $186,150.	$103,800/mo	$82,350 cushion	A pricing or occupancy miss still clears break-even, but the cushion shrinks fast.
Fixed-cost increase	Mature corporate overhead rises 10% to $52,700/month, and the $45,000 rent stays in place.	$109,200/mo	$109,800 cushion	Higher overhead lifts the target, but the model still covers it.
Variable-expense pressure	Variable load rises from 10.5% to 17.0% as utilities and leasing commissions reset to Year 1 levels.	$111,900/mo	$107,100 cushion	Lower margin pushes break-even up, so small slippage hurts more.
Combined pressure	Lease-up falls 50%, overhead rises 20%, and variable load resets to 17.0%.	$123,500/mo	$14,000 gap	This is the case that can slip Month 58 break-even, push minimum cash past -$5.787m, and keep EBITDA below the Year 5 loss.

Is the first student housing deal ready for break-even?

Founder checklist

Not yet. Year 1 EBITDA is -$516K and minimum cash bottoms at -$5.787M in Month 59, so the first property commitment only works if demand, staffing, and cash coverage are already lined up.

1Site controlBefore Month 3

Verify site control and real student demand before you lock the first purchase or lease deal, because the first acquisition starts in Month 3 and construction starts in Month 6.

2Fixed load$30.8K/mo

Check that Year 1 fixed burn covers office rent, software, legal, insurance, utilities, and payroll, then track the rise to about $47.9K/mo by Year 3.

3Contribution83% CM

At 17% total variable cost in Year 1, each rent dollar leaves 83 cents to cover the fixed load, so discounting has to stay tight.

4Ops coverageMonth 13

Make sure maintenance and admin coverage starts by Month 13, before the first openings, so repairs, turnovers, and desk work do not slow occupancy.

5Cash cushion-$5.8M

This plan reaches a cash low of -$5.787M in Month 59, so your reserve plan has to survive the late build-out, not just the first opening.

6Pre-leasing6 waves

Run one pre-leasing push ahead of each of the six property launches, so marketing spend lands before move-ins and not after the beds are empty.