Enter the total hotel revenue ($), the total hotel profit ($), and the number of rooms sold into the Hotel Cost Calculator. The calculator will evaluate and display the Hotel Cost.

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## Hotel Cost Formula

The following formula is used to calculate the Hotel Cost.

HC = (R-P) / NR

- Where HC is the Hotel Cost ($/room)
- R is the total hotel revenue ($)
- P is the total hotel profit ($)
- NR is the number of rooms sold

To calculate a hotel cost, subtract the hotel profit from the hotel revenue, then divide by the number of rooms sold.

## How to Calculate Hotel Cost?

The following example problems outline how to calculate Hotel Cost.

**Example Problem #1**

- First, determine the total hotel revenue ($). The total hotel revenue ($) is given as 25,000 .
- Next, determine the total hotel profit ($). The total hotel profit ($) is calculated as 10,000 .
- Next, determine the number of rooms sold. The number of rooms sold is found to be 60.
- Finally, calculate the Hotel Cost using the formula above:

HC = (R-P) / #R

Inserting the values from above yields:

HC = (25,000-10,000) / 60 = 250.00 ($/room)

**Example Problem #2**

The variables needed for this problem are provided below:

total hotel revenue ($) = 7000

total hotel profit ($) = 3000

number of rooms sold = 50

Entering these values and solving gives:

HC = (R-P) / #R = 200.00** **($/room)