RevPAR Calculator
RevPAR: $0.00
RevPAR (Revenue Per Available Room) is one of the most important KPIs for any hotel. It tells you how efficiently your property is generating revenue from the rooms you have available combining both occupancy rate and average daily rate (ADR) into one powerful metric.
With our free online RevPAR Calculator, you can quickly calculate your property’s performance and make data-driven decisions to boost revenue.
What is RevPAR?
RevPAR (Revenue Per Available Room) is a metric used in the hospitality industry to measure a hotel’s financial performance. It indicates how well a property is filling its rooms and at what rate.
Formula: RevPAR=Total Room RevenueNumber of Available Rooms\text{RevPAR} = \frac{\text{Total Room Revenue}}{\text{Number of Available Rooms}}RevPAR=Number of Available RoomsTotal Room Revenue
or RevPAR=ADR×Occupancy Rate\text{RevPAR} = \text{ADR} \times \text{Occupancy Rate}RevPAR=ADR×Occupancy Rate
Both formulas give the same result depending on what data you have available.
Why RevPAR Matters
RevPAR is more than just a number it reflects the overall health of your hotel’s revenue strategy.
Here’s why it’s important:
- 📈 Performance Benchmark: Compare your property’s performance month-over-month or against competitors.
- 💰 Revenue Strategy Insights: Identify whether to focus on increasing occupancy or room rates.
- 🎯 Forecasting Tool: Helps in setting room pricing and revenue management goals.
- 🏆 Investor Confidence: A key indicator used by investors and management to evaluate profitability.
How to Use the RevPAR Calculator
- Enter your Average Daily Rate (ADR) your average revenue per occupied room.
- Enter your Occupancy Rate (%) the percentage of rooms sold.
- Click Calculate to see your RevPAR value instantly.
You’ll get live results showing your property’s revenue per available room making it easier to adjust pricing, promotions, or distribution strategies in real time.
Example Calculation
If your hotel’s ADR is ₹6,000 and occupancy rate is 80%,
then: RevPAR=6,000×0.8=₹4,800\text{RevPAR} = 6,000 × 0.8 = ₹4,800RevPAR=6,000×0.8=₹4,800
That means on average, your property earns ₹4,800 per available room per night.
How to Improve Your RevPAR
Here are some proven strategies to boost your RevPAR:
- Adopt Dynamic Pricing: Use a revenue management system (RMS) to adjust rates automatically based on demand.
- Enhance Direct Bookings: Offer exclusive discounts or perks on your website to reduce OTA commissions.
- Upsell & Cross-Sell: Encourage guests to book higher-category rooms or add-ons.
- Optimize Distribution Channels: Balance OTA and direct bookings to maintain profitability.
- Invest in Guest Experience: Happy guests leave better reviews leading to higher demand and rates.
Related Metrics You Should Track
To get a full picture of your hotel’s performance, monitor these along with RevPAR:
| Metric | Formula | Purpose |
|---|---|---|
| ADR (Average Daily Rate) | Room Revenue ÷ Rooms Sold | Measures average rate per room |
| Occupancy Rate | Rooms Sold ÷ Rooms Available | Shows how full your hotel is |
| GOPPAR (Gross Operating Profit Per Available Room) | Gross Operating Profit ÷ Rooms Available | Indicates total profitability |
| TRevPAR (Total Revenue Per Available Room) | Total Hotel Revenue ÷ Rooms Available | Considers all revenue sources |
Start Calculating Now
Use the RevPAR Calculator below to find your hotel’s performance metric in seconds.
No downloads, no spreadsheets just quick and accurate results to help you make smarter revenue decisions.
Final Thoughts
RevPAR is the heartbeat of hotel revenue management.
By monitoring it regularly and combining it with a solid strategy, you can increase profitability, optimize pricing, and maximize occupancy all while improving guest satisfaction.