Occupancy Rate Calculator
Enter the occupied units and total units to get the occupancy rate and the vacancy rate, assessing a property or hotel's letting performance.
Input Data
Results
At a glance:Occupancy rate shows the share of units in use. Occupancy rate = occupied units ÷ total units × 100; vacancy rate = 100 − occupancy rate; vacant units = total units − occupied units.
Formula
Occupancy rate = occupied units ÷ total units × 100.
Vacancy rate = 100 − occupancy rate.
Vacant units = total units − occupied units.
$$\text{Occupancy Rate} = \dfrac{\text{Occupied Units}}{\text{Total Units}} \times 100\%$$$$\text{Vacancy Rate} = 100\% - \text{Occupancy Rate}$$How to Use
- Enter the occupied units.
- Enter the total units.
- Read the occupancy rate, vacancy rate and vacant units.
FAQ
What occupancy rate is ideal?
It depends on the asset type and market. Long-lease properties like offices and shops generally target above 90%; a hotel's occupancy swings far more with season and location. The key is to compare against similar properties in the same district and your own historical data, and always weigh it together with the rent level.
What is the relationship between occupancy and vacancy rate?
They are complementary and add up to 100%. Occupancy measures the share in use; vacancy measures the share generating no income. When computing effective gross income (EGI) or net operating income (NOI), the vacancy rate is normally deducted.
Does a high occupancy rate always mean a good return?
Not necessarily. If the high occupancy was bought with a big rent cut, the actual income may not be optimal. Occupancy is only a 'quantity' metric and should be read alongside rent level and operating expenses to reflect the true return.
How do occupancy, vacancy and effective gross income (EGI) connect?
The three are linked and form a core set in property-income analysis. Occupancy measures the share 'in use', vacancy the share 'earning nothing'; they add to 100% (e.g. 85% occupancy means 15% vacancy). Effective Gross Income (EGI) applies the occupancy to the revenue: EGI = potential gross income (assuming 100% occupancy) × occupancy rate + other income (e.g. car parks, advertising). The vacancy rate is exactly the potential rent lost to empty units and must be deducted when computing EGI. With potential gross rent of HK$7.2m and 85% occupancy, about HK$1.08m is lost to vacancy and EGI is about HK$6.12m. EGI is the starting point for NOI (= EGI − operating expenses), which underpins the cap rate and the income approach to valuation. So occupancy affects EGI, NOI and ultimately the property's value — use a realistic, not over-optimistic, occupancy assumption.
Is the ideal occupancy the same for residential, offices, shops and hotels?
No — it differs sharply by asset type, lease structure and market. Long-lease assets (residential, offices, shops) have annual, stable tenancies, so a higher occupancy is both achievable and expected — investors usually want above 90% for offices/shops; a persistently low rate often signals over-pricing, poor location or weak management. Hotels and serviced apartments are 'short-lease': rooms are re-let every night, so occupancy naturally fluctuates with season, weekday and holidays — you cannot judge them by long-lease standards. The hotel industry cares more about RevPAR (revenue per available room = occupancy × ADR), because raising room rates in peak season (even if occupancy dips slightly) can lift total revenue. Even within long-lease assets, the 'reasonable' occupancy varies by district, building age and size. So judge occupancy against 'same-district, same-type, same-class' peers and the property's own trend, not a universal number — and always combine it with the rent level.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.