RevPAR to Break-Even Occupancy Calculator
For hotel and short-term rental operators, knowing the occupancy rate needed just to break even is critical for pricing and budgeting decisions. Enter your average daily rate (ADR), variable cost per occupied room (housekeeping, amenities, utilities), total rooms, and monthly fixed costs to find your break-even occupancy percentage.
About this calculator
Find the minimum occupancy rate a hotel needs to cover fixed operating costs, based on average daily rate, variable cost per occupied room, and total room count.
Frequently Asked Questions
What is break-even occupancy?
It's the minimum percentage of rooms you need to fill, on average, over a period to cover all fixed and variable costs at your current ADR — below this you're operating at a loss.
What counts as a fixed cost for a hotel?
Fixed costs typically include mortgage or lease payments, insurance, salaried staff, property taxes, and other expenses that don't change with occupancy.
How can I lower my break-even occupancy?
You can raise ADR, reduce variable costs per room, or cut fixed overhead. Even small increases in ADR can meaningfully lower the occupancy needed to break even.