How the calculator works
Three formulas, all on the same dates and the same comparable set:
- RevPAR = occupancy × ADR, or accommodation revenue ÷ available nights
- RevPAR index = your RevPAR ÷ market RevPAR
- MPI = your occupancy ÷ market occupancy
- ADR index = your ADR ÷ market ADR
Because RevPAR is occupancy multiplied by rate, the RevPAR index always equals MPI multiplied by ADR index. That is the useful part. A RevPAR index of 1.08 tells you that you are 8% ahead. MPI and ADR index tell you whether you got there by filling more nights or by charging more for them.
Hotels write the same indices on a base of 100, so 1.08 is "108". In hotel reports RevPAR index is called RGI (revenue generation index) and ADR index is called ARI (average rate index). More on each in RevPAR and RevPAR index, MPI and ADR and ADR index.
Worked example
A 10-listing portfolio in March (31 nights). Owners blocked 10 nights, so there were 300 available nights. The portfolio booked 216 nights for $51,840 of accommodation revenue.
| Measure | Portfolio | Market |
|---|---|---|
| Occupancy | 216 ÷ 300 = 72% | 64% |
| ADR | $51,840 ÷ 216 = $240 | $250 |
| RevPAR | $51,840 ÷ 300 = $172.80 | 0.64 × $250 = $160.00 |
- RevPAR index = $172.80 ÷ $160.00 = 1.08
- MPI = 72 ÷ 64 = 1.125 (shown as 1.13)
- ADR index = $240 ÷ $250 = 0.96
- Check: 1.125 × 0.96 = 1.08
Read it like this. The portfolio out-earned the market by 8%, but it did it on volume. It booked 12.5% more of its nights than comparable listings while charging 4% less. That pattern usually means rates are too low on dates that would have sold anyway. Each 0.01 of RevPAR index is worth $160.00 × 0.01 × 300 = $480 a month here. Moving from 1.08 to a 1.10 target would add (1.10 × $160.00 − $172.80) × 300 = ($176.00 − $172.80) × 300 = $960 for the month.
Why three listings with the same RevPAR can need opposite fixes
Take three listings on one street:
| Listing | Occupancy | ADR | RevPAR |
|---|---|---|---|
| A, chasing occupancy | 95% | $180 | $171.00 |
| B, chasing rate | 55% | $320 | $176.00 |
| C, balanced | 79% | $256 | $202.24 |
A looks full and B looks premium, yet C earns about 15% more per available night than B and 18% more than A. A needs higher rates. B needs to sell more nights. If you only watch occupancy or only watch rate, you will push both of them the wrong way.
What to enter, and what to leave out
- Use accommodation revenue only. Cleaning fees, taxes and pet fees are pass-through or cost recovery and inflate ADR.
- Subtract owner and maintenance blocks from available nights. AirDNA does the same in its occupancy figures, so your numbers line up with most market data.
- Match the period exactly. Comparing your March with the market's quarter is the most common error.
- Match the comparable set. Same area, same bedroom count and a similar quality tier. A 2-bedroom unit against the whole city average tells you little.
Where to get market figures
Your pricing tool's market or neighborhood view (PriceLabs, Wheelhouse, Beyond), a market data subscription (AirDNA, Key Data) or your own comp set. Each defines its market differently, so use the same source every time. A change in source can move your index by more than a month of good pricing. Our market reports will publish dated figures for the markets we cover; join the monthly benchmark to get each one when it's out.
Limits of a single number
One calculation covers one period and one blended rate. It will not show:
- that your gap sits entirely in the 31-90 day booking window
- that one 28-night booking is propping up occupancy
- that a third of your "booked" nights have no verified rate
That is why we check every listing every morning across the next 14, 30, 31-60 and 61-90 days, run distortion checks on long stays, owner blocks and unverified rates, and give each recommendation a confidence score before a revenue manager approves it. See booking pace and pickup for how the windows work.
Get a free portfolio revenue audit
FAQ
How do you calculate RevPAR?
Divide accommodation revenue by available nights, or multiply occupancy by ADR. 72% occupancy at $240 ADR gives $172.80 RevPAR.
How do you calculate RevPAR index?
Divide your RevPAR by the market's RevPAR for the same dates and comparable set. $172.80 ÷ $160.00 = 1.08, or 108 on the hotel scale.
What is a good RevPAR index?
Above 1.00 means you earn more per available night than comparable listings. Most operators aim to hold above 1.00 across the year. A sustained 1.10 or more on a clean comparable set is strong. Below 0.95 for three months in a row is worth investigating.
Should I include blocked nights?
No. Exclude owner and maintenance blocks from available nights, or your occupancy and RevPAR will look worse than your pricing really is. Do report blocked nights separately.
Is RevPAR the same as revenue?
No. Two listings can have the same RevPAR and very different total revenue if one is available for more nights. RevPAR measures pricing efficiency. Total revenue also depends on how many nights you make available.
Can I use this for a hotel or motel?
Yes. Use rooms instead of listings and your STAR or comp set figures as the market. The math is identical.
Related: All metrics · RevPAR · MPI · ADR · Booking pace · When to hire a revenue manager · Market reports
PriceLabs, Wheelhouse, Beyond, AirDNA, Key Data and STR are trademarks of their respective owners. Airyield is an independent company and is not affiliated with, endorsed by or sponsored by any of them. Results are estimates from the figures you enter.