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Occupancy vs Rate Calculator

Every short-term rental has an elasticity curve: higher rate → lower fill, lower rate → higher fill. The revenue-maximizing point is rarely at either extreme. This calculator lets you model a rate ± change and an estimated fill response, then compares total monthly revenue across scenarios so you can find your revenue peak.

$
%
$

Revenue-maximizing rate

$200

Projected occupancy at optimum

65.0%

Net monthly revenue at optimum

$3,347

Lift over current

$71

Net @ -$20

$3,121

Net @ -$10

$3,209

Net @ current rate

$3,276

Net @ +$10

$3,322

Net @ +$20

$3,347

How the math works

At a current rate of $180 with 72% occupancy and elasticity of 3.5 pts per $10, the math shows that raising to $190 drops occupancy to ~68% but net revenue holds roughly flat — the gain per booked night almost offsets the lost fill. Raising to $200 usually trips the curve and net drops. The optimum is often within ±$10-$15 of where you are.

Don't trust a single calculation. Run A/B tests: try +$10 for 2 weeks, hold calendar open for comparison. If fill drops less than elasticity assumed, widen the price experiment. If fill drops more, elasticity is steeper and you should sit.

How to Use

  1. Enter your current nightly rate and current occupancy.
  2. Enter the elasticity estimate — how much occupancy drops per $10 rate increase.
  3. The calculator tests rate changes of -$20, -$10, 0, +$10, +$20 and projects monthly revenue at each.
  4. The highest-revenue point is your estimated optimum. Test it in-market to confirm.

Frequently Asked Questions

How do I estimate my elasticity?

Look at your last 6 months. When you raised rate $10, how much did booked nights drop? Typical STR elasticity: 2-5 occupancy percentage points lost per $10 rate increase in normal demand markets. In peak season, elasticity flattens (can raise rate more without losing fill). In off-season, it steepens.

Why isn't max occupancy always best?

100% occupancy means you're underpriced. The revenue-maximum is rarely at max fill; it's usually at 65-80% depending on market. Higher-margin bookings at 75% fill often outperform lower-margin 95% fill. Occupancy is a vanity metric; revenue is the real one.

What about cleaning cost — does higher fill help?

More fill = more turns = more cleaning. Only if your margin per night > cleaning per turn ÷ average stay is high-fill accretive. At $150 nightly rate with $80 cleaning and 2.5 night avg stay, cleaning eats $32 per booked night — so the true net rate is $118. At $200 nightly rate with same cleaning and 3.5 night stay, cleaning is $23/night — net $177. Higher rate = longer stay = lower cleaning burden per night.

Is the elasticity stable?

No. It shifts with season, day of week, comp supply, and calendar pressure (midweek vs weekend of a holiday). Review elasticity quarterly. Dynamic pricing tools essentially measure and exploit elasticity continuously.

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