Hotel Break-Even Occupancy Calculator
Estimate the occupancy required for a hotel to reach break-even.
Enter your figures
Use the inputs below to calculate your hospitality or restaurant metric.
Estimated Results
Results update from the figures you enter.
How this Hotel Break-Even Occupancy Calculator works
Estimate the occupancy required for a hotel to reach break-even.
Formula: Break-Even Occupancy = Fixed Costs ÷ (ADR − Variable Cost) ÷ Available Room Nights × 100
With the default values shown above, the calculator returns 41.67%.
How to use this calculator
What to enter
Enter or select the following as requested: Currency — Display Only; Fixed Costs; Available Room Nights; Variable Cost per Occupied Room; Average Daily Rate. Follow the units, valid ranges, examples, and options displayed beside each field.
What the result means
The result estimates the occupancy level needed to cover the hotel costs and room-revenue assumptions entered. Check available room nights, average room rate, variable cost per occupied room, and the period used for fixed costs.
When to use it
Use this to model a hotel occupancy target for covering the costs represented in the form. Validate the result against actual room inventory, seasonality, and operating costs.