Hotel Break-Even Occupancy Calculator

About this calculator

A hotel's break-even occupancy is the percentage of rooms that must be filled, on average, for room revenue to just cover fixed monthly costs — rent or mortgage, staff salaries, insurance, and other expenses that don't change with how many rooms are sold. Below that occupancy level the property runs at a loss regardless of how well individual rooms are priced; above it, each additional booking contributes toward profit.

This calculator derives that threshold from monthly fixed costs, total room count, and average daily rate (ADR) — a standard hospitality-industry metric for the average revenue earned per occupied room per night. It's a core planning number for hotel general managers, revenue managers, and owners setting pricing strategy, evaluating whether a discount promotion still leaves the property profitable, or forecasting how a slow season will affect the bottom line.