ADR Calculator
Compute average daily rate the way the industry defines it — room revenue over nights SOLD — and see how folding cleaning fees into it quietly overstates your pricing power.
ADR Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- Blind to unsold nights by construction — pair with occupancy or RevPAR.
- Assumes a uniform average length of stay for fee allocation.
- Excludes taxes and platform fees, which belong in the operating analysis.
In short: ADR is room revenue divided by nights sold: 44,982 over 238 nights is 189.00. Fold in 6,650 of cleaning fees and it reads 216.94 — a 14.7837% overstatement of a rate you never actually charged.
Formula
ADR = room revenue ÷ nights sold
effective guest rate = ADR + cleaning fee ÷ length of stay
[('room revenue', 'nightly rates only, no fees or taxes'), ('nights sold', 'occupied nights, never available nights'), ('cleaning fee', 'scales with stays, not with nights'), ('index', 'your ADR ÷ competitor ADR × 100')]
Worked Example
- Isolate nightly rate revenue from every fee and tax.
- Divide by the nights actually sold.
- Keep cleaning fees out — they scale with turnovers.
- Add the guest's share of the fee to see the effective rate.
- Index against a comparable set to judge pricing power.
44,982 of room revenue over 238 nights sold gives an ADR of 189.00. Charging 95 per stay across 70.0 stays adds 6,650 of cleaning revenue; folding that in produces 216.94, overstating the rate by 27.94 a night or 14.7837%. The guest's effective rate on a 3.40-night stay is 216.94. Against a competitor set at 205.00 the index is 92.20 — a deliberate discount, justified only if it is buying occupancy.
Strengths & Limits Of This Model
Where this engine is strong
- Prints the fee-inclusive error so its size is visible
- Shows the effective rate a guest actually perceives
- Refuses to report an ADR when nothing was sold
Where it stops
- No volume dimension
- Uniform stay length assumed
Practical Use Cases
Benchmarking your rate
Comparing like-for-like against market ADR data.
Auditing a revenue report
Checking whether fees were folded into the rate.
Setting a cleaning fee
Seeing what it does to the price a guest perceives.
Judging a discount strategy
Indexing against a competitive set.
Feeding a RevPAR calculation
Producing the rate half of the RevPAR identity.
Methodology & Editorial Standards
ADR is room revenue over nights sold, with fees and taxes excluded from the numerator as the industry standard requires. The page computes the incorrect fee-inclusive figure alongside it and prints the overstatement, because that error is extremely common in host spreadsheets and silently breaks every benchmark comparison. Cleaning revenue is derived from stays rather than nights, since that is how it is actually charged.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
ADR Calculator — 10 Expert FAQs
10 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
How is ADR calculated?
Total room revenue divided by the number of nights sold. Only nightly rate revenue belongs in the numerator, and only occupied nights in the denominator — unsold nights are absent from both sides, which is the defining feature of the metric and the reason it cannot be used alone.
Should cleaning fees be included in ADR?
No. A cleaning fee is cost recovery that scales with turnovers, not a nightly rate that scales with nights. Including it inflates ADR, makes short-stay listings look expensive for reasons unconnected to pricing, and produces a figure that cannot be compared against any published benchmark.
What is the difference between ADR and RevPAR?
ADR divides by nights SOLD; RevPAR divides by nights AVAILABLE. RevPAR therefore includes the cost of empty nights and is always less than or equal to ADR. The relationship is exact: RevPAR equals ADR multiplied by occupancy.
Can ADR be higher than what guests pay?
It is usually lower, because guests also pay cleaning fees, extra-guest charges and taxes on top of the nightly rate. The effective rate a guest experiences is your ADR plus their share of those fees, which is why a listing can look expensive in search while reporting a modest ADR.
What is a rate index?
Your ADR divided by the average ADR of a comparable set, expressed as a percentage. Above one hundred means you command a premium. In hotel benchmarking this is called the ARI, and it is read alongside occupancy penetration — a high rate index with a low occupancy index means you are priced above what the market will absorb.
Does a higher ADR mean more revenue?
Not necessarily, and this is the metric's central trap. A higher rate on fewer nights can easily produce less revenue than a lower rate on more. ADR is blind to volume by construction, so revenue conclusions require occupancy or RevPAR alongside it.
How do taxes affect ADR?
They should be excluded entirely. Occupancy and lodging taxes are collected on behalf of an authority and are not your revenue, so including them overstates both ADR and every metric derived from it. Platforms differ in how they present these, which is a common source of reconciliation errors.
Should I use gross or net of platform fees?
Gross for ADR, because the benchmark data you are comparing against is gross. Platform fees belong in the operating analysis rather than in the rate. Keeping the two separate lets you see whether a weak result came from pricing or from distribution costs.
How does length of stay change my ADR?
It should not change ADR at all, and if it does, fees are leaking into your rate calculation. Length of stay changes the number of cleaning fees you collect and pay, which affects profit — but the nightly rate is the nightly rate.
Why is my ADR below the market?
Either you are deliberately buying occupancy, or your listing is underpriced, or your comparable set is wrong. Check occupancy first: if you are discounting and still not full, the problem is demand or presentation rather than price, and cutting further will only reduce revenue.