FREE HOTEL CALCULATOR
Hotel Break-Even Occupancy Calculator
Estimate occupancy required for room contribution to cover fixed annual costs.
INDICATIVE RESULT
47.24%Contribution per occupied room€145
Break-even occupied room nights17,241
Calculated directly from the assumptions shown.
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How the hotel break-even occupancy calculation works
Break-even occupancy = fixed costs ÷ [rooms × 365 × (ADR − variable cost per occupied room)].
Example calculation
A 100-room hotel with €2.5m fixed costs, €180 ADR and €35 variable room cost requires sufficient occupied nights to cover the fixed base.
INVESTMENT USE
How professionals use the result
Use this as a room-department screening metric. Include contribution from F&B and other departments separately when relevant.
Common mistakes
- Using total operating cost as fixed cost
- Ignoring variable room cost
- Assuming every room is available all year
- Treating accounting break-even as debt-service break-even
CLEAR ANSWERS