Calculator Inputs
Use the responsive grid below. It shows three columns on large screens, two on medium screens, and one on small screens.
Profit Sensitivity Plot
This plot shows how revenue and net profit change as occupancy moves from 20% to 100% using the current inputs.
Example Data Table
| Scenario | Rooms | Occupancy | ADR | Gross Revenue | Net Profit | Profit per Occupied Room |
|---|---|---|---|---|---|---|
| Weekday Corporate Mix | 48 | 68% | $118.00 | $13,824.00 | $2,764.00 | $12.45 |
| Weekend Leisure Peak | 48 | 89% | $149.00 | $19,433.00 | $5,206.00 | $16.24 |
| Low Season Discount | 48 | 52% | $94.00 | $9,913.00 | $612.00 | $4.90 |
| Boutique Upsell Strategy | 30 | 76% | $172.00 | $14,121.00 | $3,944.00 | $17.30 |
| Extended Stay Mix | 75 | 81% | $133.00 | $28,973.00 | $6,082.00 | $10.01 |
Formula Used
Available Room Nights = Total Rooms × Analysis Period Days
Occupied Room Nights = Available Room Nights × Occupancy Rate
Gross Revenue = Occupied Room Nights × (ADR + Ancillary Revenue per Occupied Room)
Commission Cost = Room Revenue × Distribution Commission Rate
Total Variable Cost = Occupied Room Nights × (Housekeeping + Amenities + Utilities)
Net Profit = Gross Revenue − Commission − Processing − Tax − Variable Costs − Fixed Costs
Profit per Occupied Room = Net Profit ÷ Occupied Room Nights
Break-even Occupied Nights = Fixed Costs ÷ Contribution per Occupied Room
Break-even Occupancy = Break-even Occupied Nights ÷ Available Room Nights × 100
This model treats absorbed taxes as an expense. When taxes are fully charged to guests separately, enter zero for the tax rate.
How to Use This Calculator
- Enter the number of analysis days and total rooms available for sale.
- Input your expected occupancy rate and average daily rate.
- Add ancillary revenue earned from each occupied room.
- Fill in distribution, processing, and absorbed tax percentages.
- Enter variable per-room costs and period fixed costs.
- Press Calculate Profit to review profit, margins, break-even occupancy, and the sensitivity graph.
FAQs
1) What does per room profit mean?
It is the net profit earned for each occupied room night after deducting commissions, payment fees, taxes you absorb, variable costs, and allocated fixed expenses.
2) Why does occupancy matter so much?
Higher occupancy spreads fixed costs across more sold room nights. That usually improves profit, but only when pricing and per-room contribution remain healthy.
3) What is the difference between ADR and ancillary revenue?
ADR covers room-selling revenue only. Ancillary revenue includes extras such as parking, minibar, breakfast, resort fees, laundry, or other guest purchases linked to occupied rooms.
4) Should I include taxes here?
Include taxes only when they reduce your retained revenue. If taxes are fully added to the guest bill and remitted separately, you can enter zero.
5) What does break-even occupancy tell me?
It estimates the occupancy rate needed for contribution to fully cover fixed costs. Below that point, the period is unprofitable under current pricing and cost assumptions.
6) Can I use this for scenario planning?
Yes. Change occupancy, ADR, commissions, or costs to compare pricing strategies, OTA dependence, staffing plans, seasonality, and promotional campaigns.
7) Is profit per occupied room the same as profit per available room?
No. Profit per occupied room uses sold room nights only. Profit per available room night spreads total profit across every available room night, sold or unsold.
8) Can negative profit still happen with strong occupancy?
Yes. Heavy commissions, discounting, high payroll, oversized fixed costs, or weak ancillary spend can erase gains even when many rooms are occupied.