Occupancy Break-Even for Extended Stay
Calculate the minimum occupancy rate your property must achieve to cover its costs and start generating profit.
Pinpoint the exact occupancy needed to be profitable.
Set monthly rates knowing their impact on your bottom line.
Understand how changes in costs affect your required occupancy.
Results
Enter values and click Calculate to see results
Understanding Break-Even Point
The break-even point is the moment when your total revenue equals your total costs. For an extended-stay property, this is usually measured as the minimum occupancy rate needed to avoid losing money. Any occupancy above this point generates profit.
Fixed Costs: These are expenses you have to pay regardless of occupancy, such as rent/mortgage, property taxes, insurance, and salaried staff.
Variable Costs: These are costs that scale with occupancy, like electricity consumption per unit, cleaning supplies, and wear-and-tear on furnishings. The formula is: Break-Even Units = Total Fixed Costs / (Average Rate per Unit - Variable Cost per Unit)
Frequently Asked Questions
Need Help Optimizing Your Hospitality Business?
I help businesses grow through smarter SEO - let’s chat, free of charge.
Get Free SEO Consultation