Enter hotel operating inputs
The calculator uses occupied room nights, direct room-servicing costs, and revenue-linked charges to estimate variable cost per occupied room and break-even occupancy.
Example data table
| Scenario | Available rooms | Days | Occupancy | Revenue | Estimated variable cost per occupied room |
|---|---|---|---|---|---|
| City business hotel | 120 | 30 | 72% | $198,000 | $49.09 |
| Airport property | 160 | 31 | 68% | $255,000 | $51.62 |
| Boutique resort wing | 80 | 30 | 81% | $224,500 | $57.84 |
Formula used
Available room nights = Available rooms × Period days
Occupied room nights = Available room nights × Occupancy rate
Direct variable cost per occupied room = Housekeeping + Laundry and linen + Guest supplies + Breakfast or service + Utilities + Amenities
Direct variable cost total = Occupied room nights × Direct variable cost per occupied room
Revenue-linked variable cost = Room revenue × (OTA commission % + Payment processing % + Distribution %)
Total variable cost = Direct variable cost total + Revenue-linked variable cost + Other variable costs
Variable cost per occupied room = Total variable cost ÷ Occupied room nights
Contribution per occupied room = ADR − Variable cost per occupied room
Break-even occupied room nights = Fixed costs ÷ Contribution per occupied room
How to use this calculator
- Enter available rooms and the number of days in the review period.
- Add occupancy rate and total room revenue for the same period.
- Fill in room-servicing costs that rise with each occupied room.
- Enter percentage-based costs tied to revenue, such as OTA fees.
- Add any remaining variable costs for the period, like outsourced laundry surcharges.
- Optionally include fixed costs to estimate break-even occupied room nights.
- Click the calculate button to show the results above the form.
- Use the chart and export buttons to review or share the output.
Frequently asked questions
1. What does variable cost per room mean?
It measures the average variable spending attached to one occupied room. These costs rise or fall with room nights sold, unlike fixed costs such as rent or salaried administration.
2. Why is occupancy included in the calculation?
Occupancy converts room inventory into occupied room nights. That figure is the base used to spread variable expenses and calculate ADR, per-room cost, and break-even occupancy.
3. Should breakfast always be treated as variable?
Only include breakfast here when its cost changes with guest volume. If it stays mostly fixed under your current contract, place it in fixed costs instead.
4. Are OTA commissions really variable costs?
Yes, they usually move directly with room revenue from those bookings. That makes them a practical revenue-linked variable cost for profitability and channel analysis.
5. What is contribution per occupied room?
It is ADR minus variable cost per occupied room. The value shows how much each sold room contributes toward fixed costs and operating profit.
6. How should I use the break-even result?
Compare break-even occupied room nights with expected demand. If forecast occupancy is below break-even, review pricing, staffing, amenities, or channel mix to improve margins.
7. Can I use this for weekly or yearly planning?
Yes. Keep all inputs on the same time basis. If revenue covers a week, use weekly days and weekly variable or fixed costs too.
8. Why export the results to CSV or PDF?
Exports help you archive assumptions, compare scenarios, and share results with owners, revenue managers, or finance teams without re-entering data later.