HOTEL / FREE OPERATOR TOOLS
Hotel Break-Even Occupancy Calculator
Estimate required occupancy at a constant ADR and variable room-night cost. Above 100% means the assumptions cannot break even.
Default numbers are an example, not industry data.
Formula
Break-even occupancy = fixed costs ÷ ((ADR − variable cost per occupied room-night) × available room-nights) × 100.
How it works
This model treats each occupied room-night as contributing ADR minus variable cost toward fixed costs. Enter fixed costs for the full period, net ADR excluding VAT or sales tax, variable cost per occupied room-night, available rooms and nights.
Keep fixed and variable costs separate and avoid double counting. This simplified room model assumes constant rates and costs and does not separately model restaurant or other department contributions. Compare required room-nights with capacity, then test realistic rate and cost scenarios; a result above 100% cannot be achieved under the entered assumptions.
Worked example
15,000 ÷ (100 − 25) = 200 room-nights sold. Across 100 rooms for 10 nights, break-even occupancy is 20.00%, or 20.00 rooms per night.
Frequently asked questions
What if break-even occupancy exceeds 100%?
The required room-nights exceed available capacity. Revisit pricing, costs or other revenue contributions rather than assuming the hotel can sell that occupancy.
What belongs in variable room cost?
Include costs that arise with an occupied room-night, such as relevant cleaning, laundry, amenities and commissions. Use a consistent average for the scenario.
Why must ADR exceed variable room cost?
Each sold room-night needs a positive contribution to fixed costs. If ADR is no higher than variable cost, this model cannot calculate a finite break-even point.
Are my inputs saved or uploaded?
Calculations run in your browser. Inputs are not uploaded by the calculator. Sharing puts the inputs in a readable URL; anyone with that link can see them.