FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Break Even Ratio Formula

Fx Copy

LaTeX Copy

Break Even Ratio. is the percentage of income that covers the expenses of owning and operating an income-producing property. Check FAQs

BER = \frac{DSC + OE}{GOI}

BER - Break Even Ratio?DSC - Debt Servicing Costs?OE - Operating Expenses?GOI - Gross Operating Income?

Break Even Ratio Example

With values

With units

Only example

Here is how the Break Even Ratio equation looks like with Values.

Here is how the Break Even Ratio equation looks like with Units.

Here is how the Break Even Ratio equation looks like.

1.3565 = \frac{7600 + 8000}{11500}

1.3565 = \frac{7600 + 8000}{11500}

1.3565 = \frac{7600 + 8000}{11500}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Mortgage and Real Estate » Category

Important Formulas of Mortgage and Real Estate » fx Break Even Ratio

Break Even Ratio Solution

Follow our step by step solution on how to calculate Break Even Ratio?

FIRST Step Consider the formula

BER = \frac{DSC + OE}{GOI}

Next Step Substitute values of Variables

∴

BER = \frac{7600 + 8000}{11500}

Next Step Prepare to Evaluate

∴

BER = \frac{7600 + 8000}{11500}

Next Step Evaluate

∴

BER = 1.35652173913043

LAST Step Rounding Answer

∴

BER = 1.3565

Break Even Ratio Formula Elements

Variables

Break Even Ratio

Break Even Ratio. is the percentage of income that covers the expenses of owning and operating an income-producing property.

Symbol: BER

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Break Even Ratio

Debt Servicing Costs

Debt Servicing Costs refer to the total amount of money required to cover interest payments and principal repayments on a loan or debt obligation within a specific period.

Symbol: DSC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Debt Servicing Costs

Operating Expenses

Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.

Symbol: OE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Operating Expenses

Gross Operating Income

Gross Operating Income is the total revenue generated from a property before deducting operating expenses, vacancy losses, and other non-revenue items.

Symbol: GOI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Gross Operating Income

Other formulas in Important Formulas of Mortgage and Real Estate category

Go Monthly Mortgage Payment

p = \frac{MA \cdot R \cdot {(1 + R)}^{n}}{{(1 + R)}^{n} - 1}

Go Debt Ratio

DR = \frac{TD}{TA}

Go Rental Yield

RY = (\frac{ARI}{PV}) \cdot 100

Go Price per Square Foot

P sqf = \frac{PSP}{T sqf}

How to Evaluate Break Even Ratio?

Break Even Ratio evaluator uses Break Even Ratio = (Debt Servicing Costs+Operating Expenses)/Gross Operating Income to evaluate the Break Even Ratio, The Break Even Ratio is the percentage of income that covers the expenses of owning and operating an income-producing property, calculated by dividing total operating expenses by gross potential income. Break Even Ratio is denoted by BER symbol.

How to evaluate Break Even Ratio using this online evaluator? To use this online evaluator for Break Even Ratio, enter Debt Servicing Costs (DSC), Operating Expenses (OE) & Gross Operating Income (GOI) and hit the calculate button.

FAQs on Break Even Ratio

What is the formula to find Break Even Ratio?

The formula of Break Even Ratio is expressed as Break Even Ratio = (Debt Servicing Costs+Operating Expenses)/Gross Operating Income. Here is an example- 1.356522 = (7600+8000)/11500.

How to calculate Break Even Ratio?

With Debt Servicing Costs (DSC), Operating Expenses (OE) & Gross Operating Income (GOI) we can find Break Even Ratio using the formula - Break Even Ratio = (Debt Servicing Costs+Operating Expenses)/Gross Operating Income.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Break Even Ratio Formula

Break Even Ratio Example

Break Even Ratio Solution

Break Even Ratio Formula Elements

Other formulas in Important Formulas of Mortgage and Real Estate category

How to Evaluate Break Even Ratio?

FAQs on Break Even Ratio

Variable Name