What Is Occupancy Rate?
Occupancy rate is the percentage of available units that are currently in use. It is a core performance metric for hotels, vacation rentals, apartment buildings, parking garages, hospitals, and event venues. A higher occupancy rate generally means stronger revenue utilization of your available capacity.
How to Use This Calculator
Enter the number of occupied units (rooms sold, apartments leased, seats filled) and the total available units over the same period. The calculator returns your occupancy rate as a percentage, along with the number of vacant units and your vacancy rate.
The Formula Explained
The formula is simple: divide occupied units by total available units, then multiply by 100 to convert the ratio to a percentage. The vacancy rate is the remainder, calculated as 100 minus the occupancy rate.
$$\text{Occupancy Rate} = \frac{\text{Occupied Units}}{\text{Total Available Units}} \times 100\%$$
Worked Example
A 200-room hotel sold 170 rooms last night. The occupancy rate is $$(170 / 200) \times 100 = 85\%.$$ That leaves 30 vacant rooms, a vacancy rate of \(15\%\).
FAQ
Is occupancy rate the same as ADR or RevPAR? No. Occupancy measures how full you are; ADR (average daily rate) measures price, and RevPAR combines both. Occupancy is one input to RevPAR.
Can occupancy exceed 100%? Not with a fixed inventory. If your figure is above 100%, you likely double-counted units or used the wrong total. This tool caps vacancy at zero in that case.
What is a good occupancy rate? It varies by industry. Many hotels target 70-80% annual average, while long-term rentals often aim for 90%+ to stay profitable.
