Break-even Occupancy Calculator
Find the occupancy rate needed to cover fixed costs
Cost Inputs
$
$
$
Break-even Results
Break-even Occupancy
24.7%
Required Room Nights
296
Room Nights per Day
9.9
ADR Used
$180
What break-even occupancy tells you
Break-even occupancy is the minimum occupancy rate you need in a given period to cover fixed costs, assuming your ADR and variable cost per occupied room. It’s a practical target for budgeting: if your forecast is below break-even, you need either higher rate, lower variable cost, lower fixed costs, or a different channel strategy.
If the calculator returns a break-even above 100%, that’s a signal the current cost structure can’t break even at the ADR you entered. In that case, focus on cost reduction, pricing strategy, or ancillary revenue planning.
How to act on the result
- Pricing: test what ADR increase would bring break-even under your realistic occupancy.
- Costs: adjust variable cost assumptions (linen, amenities, cleaning) and confirm what truly scales with occupied rooms.
- Inventory: if rooms are out of order, reduce rooms to reflect sellable inventory for more accurate targets.