Hotel Break Even Calculator
Find the minimum occupancy and room rate your hotel needs to cover all costs — before earning a single rupee of profit.
Enter your hotel's fixed monthly costs (rent, salaries, utilities) and variable costs per room sold (housekeeping, OTA commission, breakfast). The calculator instantly tells you your break-even occupancy %, minimum room rate needed, and contribution margin per room — with real-time OTA commission impact for Indian hotels.
🏢 Hotel Basics
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📎 Fixed Monthly Costs Stay the same regardless of occupancy
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👥 Variable Costs Per Room Night Only incurred when a room is sold
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🌐 OTA Commission Settings
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Select OTA:
Break-Even Occupancy
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-- rooms/night needed
Break-Even Room Rate
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at your current occupancy
Total Fixed Costs/Month
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must cover every month
Variable Cost/Room Night
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blended (direct + OTA mix)
Contribution Margin/Room
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ADR minus variable cost
Current Monthly Revenue
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at current occupancy & ADR
Monthly Net Position
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before taxes
Revenue to Break Even
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minimum monthly revenue
| Cost Component | Monthly Amount |
|---|---|
| Total Monthly Costs | -- |
Profitability Zone
Loss Zone: 0% – --% occupancy
Profit Zone: above --%
Your current occupancy: --%
OTA Commission Impact
Break-Even (100% Direct)
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occupancy needed
Break-Even (with OTA Mix)
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occupancy needed
Actionable Insights
Frequently Asked Questions
What is the hotel break-even point?
The hotel break-even point is the minimum level of occupancy and revenue at which your total income exactly equals total costs — no profit, no loss. Below this point, you're losing money. Above it, you're profitable. It accounts for both fixed costs (rent, salaries) and variable costs per room sold (housekeeping, laundry, OTA commission).
How is break-even occupancy calculated?
Break-even occupancy = Total Fixed Monthly Costs ÷ (ADR − Variable Cost per Room) ÷ Total Rooms × 100. For example: fixed costs ₹3,00,000 ÷ (₹3,500 ADR − ₹500 variable cost) ÷ 20 rooms × 100 = 50% break-even occupancy. Each room sold above break-even contributes directly to profit.
How does OTA commission affect break-even?
OTA commission increases your variable cost per room sold. If 70% of your bookings come through OTAs at 18% commission, your blended variable cost per room is higher than for direct bookings. This raises your break-even occupancy — you need to sell more rooms to cover the same fixed costs. This calculator shows you the difference between 100% direct vs your current OTA mix.
What is contribution margin per room?
Contribution margin = ADR − Variable Cost per Room. This is how much each room sold contributes toward your fixed costs. Once the total of all contributions equals your fixed costs, you've broken even. Every additional room sold after that is pure profit (contribution margin = profit per room beyond break-even).
What is the break-even room rate?
The break-even room rate is the minimum ADR you must charge at your current occupancy level to cover all costs. Formula: Break-even rate = (Fixed Costs ÷ Rooms Sold per Month) + Variable Cost per Room. If you're at 60% occupancy with 20 rooms, that's 360 rooms sold/month. If fixed costs are ₹2,70,000 and variable cost is ₹480/room: Break-even rate = (2,70,000 ÷ 360) + 480 = ₹750 + ₹480 = ₹1,230/night minimum.
What are typical hotel fixed costs in India?
For a 20-room property in India: Rent/EMI ₹60,000–₹2,00,000; Staff salaries ₹80,000–₹2,50,000; Electricity & water ₹20,000–₹80,000; Internet & phone ₹3,000–₹10,000; Property tax/insurance ₹3,000–₹15,000; Maintenance/AMC ₹8,000–₹25,000; Marketing/PMS ₹5,000–₹20,000. Total typically ₹1,79,000–₹6,00,000/month depending on location and property type.