Measure room income with occupancy and rate inputs. Include fees, discounts, commissions, and operating costs. Get instant insights for pricing, budgeting, and performance planning.
Use operational, pricing, and cost values to analyze room department performance for any booking period.
Sample monthly values show how room income trends can change with occupancy, pricing, and distribution costs.
| Month | Rooms | Days | Occupancy % | ADR | Gross Room Income | Net Room Income | RevPAR |
|---|---|---|---|---|---|---|---|
| January | 100 | 31 | 68.0% | $138.00 | $321,540.00 | $112,880.00 | $89.10 |
| February | 100 | 28 | 74.5% | $146.00 | $345,960.00 | $128,220.00 | $103.25 |
| March | 100 | 31 | 79.0% | $154.00 | $404,150.00 | $161,990.00 | $116.20 |
| April | 100 | 30 | 71.0% | $149.00 | $356,280.00 | $136,430.00 | $105.60 |
The calculator combines occupancy, pricing, and cost drivers to estimate room department performance. Key formulas are shown below.
Taxes are shown separately as pass-through collections, so they do not inflate net room income.
For best decisions, compare multiple scenarios by changing occupancy, ADR, and commission assumptions. This helps evaluate pricing strategy, channel mix, and cost controls.
Room income analysis should separate volume, rate, and deductions. This calculator converts room inventory and bookings into effective available room nights, then estimates realized occupancy after cancellations and no-shows. It also separates paid nights from complimentary stays, helping managers protect ADR quality. By splitting base room revenue, extra adult fees, and other room revenue, the tool shows whether topline movement comes from pricing, upselling, or occupancy growth.
Planned occupancy often overstates actual performance. A hotel may forecast 78% occupancy, but a 6% cancellation rate and 3% no-show rate can materially reduce realized room nights. The calculator converts that leakage into both nights and percentage-point gaps, making forecasting risk visible. This supports tighter deposits, better channel rules, and more accurate staffing plans. Monitoring leakage with complimentary nights also highlights where reported occupancy looks healthy while paid demand remains weak.
ADR alone is incomplete. The calculator computes effective ADR after discounts, then compares it with rack rate to produce yield percentage. For example, a 160 rate with a 10% discount becomes a 144 effective ADR, which is 90% yield versus rack. This helps teams evaluate promotions using cleaner pricing signals. Managers can test scenarios and quickly see whether discounting improves paid nights enough to justify lower rate integrity.
Gross room income can look strong while margins weaken. OTA commissions, payment fees, housekeeping cost, linen and amenities cost, and fixed room expenses all change profitability. This calculator includes those items to estimate net room income, net income per available room, and average net income per paid night. These outputs reveal whether channel mix or operating costs are eroding returns, even during high-occupancy periods.
Contribution per paid night and break-even occupancy are the most actionable outputs for budgeting. The calculator estimates contribution after variable and transaction costs, then calculates the paid nights needed to cover fixed room expenses. It also shows the occupancy gap against a target. Revenue, finance, and operations teams can use these metrics to align pricing, promotions, staffing, and maintenance plans around profitable room department performance.
Gross room income includes room sales and room-related extras before costs. Net room income subtracts commissions, payment fees, variable servicing costs, and fixed room expenses for a clearer profitability view.
They affect performance at different stages. Cancellations reduce expected arrivals earlier, while no-shows reduce realized occupancy after rooms were forecast as sold, which impacts staffing and revenue accuracy.
Usually no. Taxes are typically pass-through collections. This calculator reports taxes separately so profit metrics stay focused on operating revenue and controllable room department costs.
Yield compares effective ADR after discounts against rack rate. It helps determine whether promotional pricing is protecting rate integrity or lowering income too much for the occupancy gained.
It estimates the paid occupancy level needed to cover fixed room expenses after variable and transaction costs. This makes budgeting and target setting more realistic.
Run it daily for operational control, weekly for trend checks, and monthly for budgeting reviews. Frequent scenario testing improves pricing, channel mix, and cost management decisions.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.