Hotel Revenue Calculator

Estimate hotel room revenue from the number of rooms, your average daily rate and your average occupancy. Choose a daily, weekly, monthly, annual or custom period and the calculator returns estimated room revenue alongside daily revenue, occupied and available room nights and RevPAR — with a scenario planner comparing three sets of assumptions, a target revenue calculator that shows the occupancy or ADR needed to reach a revenue goal, and an optional AI interpretation of the results. For hotels and other room-based accommodation such as B&Bs, guest houses, inns and pubs with rooms. All figures are calculated deterministically from your inputs; nothing you enter is stored, published or indexed. Free, instant and no sign-up required. Tool built 19 September 2026.

How to Calculate Hotel Revenue

Hotel room revenue is the income a property earns from selling its rooms, and it is built from three quantities: how many rooms are available, how many nights are in the period, and how much of that capacity is sold at what average rate. To calculate it, first work out the available room nights by multiplying rooms by days. Next apply the occupancy rate to find the occupied room nights. Finally multiply the occupied room nights by the average daily rate. Take an illustrative example — not a market benchmark — of a property with 20 rooms, an ADR of £100 and 70% occupancy over 30 days. Available room nights are 20 × 30 = 600. Occupied room nights are 600 × 70% = 420. Estimated daily room revenue is 20 × £100 × 70% = £1,400, so the 30-day room revenue is £1,400 × 30 = £42,000, and RevPAR is £100 × 70% = £70. The calculator performs exactly these steps from the figures you enter, and nothing else.

Hotel Revenue Formula

Room Revenue = Rooms × Days × ADR × Occupancy Rate. Available Room Nights = Rooms × Days. Occupied Room Nights = Available Room Nights × Occupancy Rate. RevPAR = ADR × Occupancy Rate = Room Revenue ÷ Available Room Nights. Every figure in this calculator follows from these four relationships. Because the formula is a straightforward multiplication, the order of the steps does not matter: you can multiply rooms by rate first, or rooms by days first, and arrive at the same result. What does matter is consistency. The rooms, the days, the rate and the occupancy must all describe the same property over the same period, and the rate should be room revenue only, normally stated before VAT or sales tax so that it reflects what the business retains.

How Rooms, ADR and Occupancy Affect Revenue

The three inputs multiply together, so each has a proportional effect. Raise the ADR by 10% and room revenue rises by roughly 10% if occupancy holds; raise occupancy by 10% and the effect is the same if the rate holds. The two are rarely independent in practice. A higher rate can reduce demand, lowering occupancy, while discounting to fill rooms lowers the revenue earned on every room that would have sold anyway. Rooms are the least flexible input: adding a room changes capacity permanently and usually requires capital, whereas rate and occupancy change week by week. Rate improvements also carry almost no additional cost, whereas each extra occupied night brings cleaning, laundry, consumables and often commission with it. Revenue is the same either way; what is left after costs is not. Testing changes one at a time in the scenario planner shows the arithmetic clearly before demand, cost and seasonality are brought into the picture.

What Is ADR?

ADR stands for Average Daily Rate — the average room revenue earned per occupied room night. It is calculated by dividing room revenue by the number of rooms sold, and it measures price rather than volume. Vacant rooms play no part in ADR. In this calculator you enter ADR as an assumption; if you want to work out the rate you actually achieved from your revenue and rooms sold, the Hotel ADR Calculator does that calculation. Keep ADR to accommodation revenue only, and be consistent about whether it is stated before or after tax and before or after booking commission, because mixing bases makes one period look better or worse than another for no real reason.

What Is Hotel Occupancy?

Occupancy is the percentage of available room nights that were sold. A 20-room property with 600 available room nights in a month that sells 420 of them has 70% occupancy. It measures volume rather than price, so it needs to be read alongside ADR: a property can run full at a low rate or half-empty at a high one, and neither pattern is automatically better. In this calculator occupancy is an assumption you enter. To calculate the occupancy a property actually achieved from rooms available and rooms sold, use the Hotel Occupancy Calculator. Occupancy must sit between 0% and 100% — the calculator rejects anything outside that range, because a property cannot sell more room nights than it has.

What Is RevPAR?

RevPAR — revenue per available room — combines ADR and occupancy into one figure. Multiply ADR by the occupancy rate, or divide room revenue by available room nights, and you reach the same number apart from rounding. Using the illustrative example above, £100 × 70% = £70, and £42,000 ÷ 600 = £70. RevPAR is valuable because it rewards neither volume nor price on its own: a property that fills every room at a heavy discount and one that sells half its rooms at double the price can arrive at the same RevPAR, and a rate rise that costs more occupancy than it gains in price shows up as a lower RevPAR. It is the figure most operators, buyers and lenders use to compare one period with another.

How to Estimate Monthly Hotel Revenue

A monthly estimate can mean two things. A fixed 30-day month is convenient for planning and lets one month be compared with another on equal terms. A calendar month uses the true number of days — 31 in July, 30 in September, 28 or 29 in February — which matters when you are reconciling an estimate against actual trading. The calculator supports both: choose 30 days for a flat assumption, or a calendar month and year for the exact figure. Whichever you use, remember that a single occupancy and rate for a whole month conceals the pattern inside it. Weekends and weekdays, school holidays and events can trade very differently, and a month that averages 70% may contain weeks at 95% and weeks at 40%.

How to Estimate Annual Hotel Revenue

Annual room revenue at flat assumptions is rooms × 365 × ADR × occupancy — for the illustrative property, 20 × 365 × £100 × 70% = £511,000. In a leap year the calculator uses 366 days when you select a 12-month calendar period for that year. The important caveat is that very few accommodation businesses trade evenly across a year. A coastal property may earn most of its revenue in four months; a business hotel may be quiet every weekend. A flat annual figure is therefore an estimate of scale, not a forecast. To build a month-by-month projection with seasons, scenarios and sensitivity testing, use the Revenue and Occupancy Forecast, and to turn seasonal thinking into a rate calendar, use the Seasonal Pricing Planner.

Hotel Revenue Scenario Planning

The scenario planner compares your current assumptions with two alternatives on a 365-day basis, showing the annual room revenue, the difference, the percentage change, occupied room nights and RevPAR for each. It is the most useful part of the tool for owners and buyers, because it makes the financial effect of a pricing or occupancy assumption visible before any decision is taken. Raising ADR from £100 to £110 at the same 20 rooms and 70% occupancy adds £51,100 a year in the example; lifting occupancy from 70% to 75% at the same rate adds £36,500. The target revenue calculator works the other way round: enter the revenue you need and it returns the occupancy required at your ADR, or the ADR required at your occupancy. Where the required occupancy exceeds 100% the tool says so plainly rather than presenting an impossible result as achievable.

Room Revenue vs Total Hotel Revenue

This calculator estimates room revenue only. Total property revenue adds everything else a hospitality business sells: food and beverage, restaurants and bars, events and functions, spa and leisure, parking, activities, equipment hire and other ancillary income. For some properties these are minor; for a hotel with a busy restaurant or a pub with rooms they can rival the rooms themselves. These figures must not be mixed into ADR, occupancy or RevPAR, which are strictly room metrics — including them inflates the rate and makes comparisons meaningless. If you need total revenue, operating costs and profit, the Hotel Profit Predictor and the Profit and Loss Forecast App are built for that, and the Direct Booking Revenue Calculator looks at what booking commissions take from room revenue.

Using Hotel Revenue Estimates When Buying or Selling a Property

For a buyer, a quick room revenue estimate is a first sanity check on a sales advertisement. If the particulars claim a turnover that would need 95% occupancy at the advertised rate, or a rate well above anything comparable, the figure deserves scrutiny before any further time is spent. The estimate does not replace three years of accounts, VAT returns and booking-system reports, but it shows where to look. For an owner, the same arithmetic helps frame what a modest rate or occupancy improvement could be worth, and presenting clear rooms, ADR, occupancy and RevPAR figures by month makes a trading history easier for buyers and lenders to verify. Revenue is never value on its own: what a property is worth depends on verified profit, tenure, condition, location and the multiple a buyer and lender will support. For the wider assessment, the Property Valuation estimates an indicative range, the Investment Analyser tests a purchase, the Deal Analyser examines an asking price against trading, and the Due Diligence Analyser organises the investigation.

Limitations of Hotel Revenue Calculations

Every result here is an estimate calculated from the assumptions you enter. The calculator does not know your market, cannot verify that the occupancy or rate is achievable, and applies one average across the whole period, flattening seasonality, weekday and weekend patterns, events and closures. It returns gross room revenue before booking platform commissions, VAT or sales tax, payment fees, cancellations and no-shows, and before every operating cost — staff, utilities, cleaning, maintenance, insurance and finance. It is not profit, cash flow, a forecast or a valuation, and currency selection changes only how figures are displayed. Treat the output as a planning aid that shows the arithmetic, and have any figures that matter reviewed by a qualified accountant or adviser before relying on them.

Related Stay4Hospitality Tools

This calculator is one of a set of free hospitality tools designed to be used together. Measure what you achieved with the Hotel Occupancy Calculator and the Hotel ADR Calculator. Need a more detailed forecast? Use the Revenue Forecast tool for a 12-month projection, the Revenue Optimisation Planner to identify where rate, occupancy and channel mix could improve, and the Seasonal Pricing Planner to build a rate calendar. Work out what is left after costs with the Hotel Profit Predictor and the Break-Even Calculator, and test whether a purchase works with the Commercial Finance Affordability Checker, the Hotel Investment Analyser and the Hotel Deal Analyser. Buyers can browse hospitality properties for sale; owners considering a sale can list their property on Stay4Hospitality and present it directly to buyers and investors.

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