Hotel break-even calculator
The occupancy that covers your costs, and what you make or lose at the occupancy you expect.
Calculate your hotel break-even point
Rent or mortgage, base utilities, salaried staff, software, insurance.
Housekeeping, linen, breakfast and amenities per room sold.
Average rate after OTA commissions.
Break-even occupancy
33.3%
50 of 150 available room nights in the period
Contribution margin
$60.00
per room night sold, after variable costs
Estimated profit at 50% occupancy
Revenue $5625 − total costs $4125 (fixed + variable)
+$1500
Contribution margin is what is left of each room night sold after variable costs (housekeeping, linen, breakfast). It is what pays for the fixed costs.
Break-even point is the occupancy at which total contribution margin exactly covers the fixed costs of the period: below it you lose money, above it every room night sold is profit.
Use net ADR, after OTA commissions: a gross rate makes the hotel look more profitable than it is.
In the glossary: ADR (Average Daily Rate) · Occupancy rate
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