The direct answer
ADR is room revenue per booked night. Occupancy is booked nights divided by available nights. RevPAR is room revenue per available night, equal to ADR times occupancy when those figures use the same room-revenue and capacity definitions.
Keep the revenue definitions aligned
ADR should refer to the earned room revenue for the booked nights in the denominator. Adding unrelated fees to one metric but excluding them from another breaks the simple relationship. Specify how discounts and refunds affect the income figure. The linked model treats other income separately from gross room revenue, so its RevPAR is not an all-revenue-per-night measure.
To apply the approach to an editable scenario, use the Airbnb / Short-Term Rental Calculator. For the neighboring question, explore Break-Even Occupancy Calculator.
Match the period and capacity
An annual occupancy share and a peak-week ADR do not form a representative annual RevPAR. Use values covering the same period. Availability also needs a consistent treatment of blocked nights. When comparing properties, explain whether owner-use nights are excluded; otherwise one property’s apparent occupancy advantage may simply come from a smaller denominator.
Look past room-revenue efficiency
A higher RevPAR can result from higher prices, more occupancy or both. It says nothing directly about costs. More booked nights can increase cleaning or utilities, while a higher price may change occupancy. Use the operating-profit model to carry those effects forward instead of treating RevPAR as cash flow or return on invested cash.
Worked example
At $180 ADR and 65% occupancy, RevPAR is $117 per available night. Multiplying $117 by 365 available nights produces $42,705 annual room revenue. RevPAR does not equal the nightly price paid by a guest; it spreads revenue across both booked and unbooked available nights.
Open Airbnb / Short-Term Rental Calculator and test your assumptions →
Common mistakes and limitations
Enter 65 for a 65% occupancy field, not 0.65. Do not include cleaning charges in ADR while leaving them outside the room-revenue figure used for comparison.
Uses user-entered assumptions and does not access Airbnb/AirDNA or guarantee local STR legality, demand or pricing.
Frequently asked questions
Can RevPAR be above ADR?
With occupancy between 0% and 100% and matching definitions, RevPAR cannot exceed ADR.
Does high RevPAR mean high profit?
No. Platform fees, management and operating costs still determine how much of the revenue remains.
Sources and further reading
The article’s examples are illustrative arithmetic. The references below provide context for operating, valuation or transaction concepts; they do not endorse the assumptions or the calculator.
- Fannie Mae — Selling Guide B3-3.8-03, Short-Term Rental (09/02/2026)Current short-term-rental income context and vacancy/maintenance treatment.
Read our editorial policy for the scope of these educational methods.