PG profit calculator: monthly profit, margin and break-even occupancy
By Giridhar Reddy, founder of Domvio, Bengaluru
Published
A PG business is profitable when the rent from filled beds covers the fixed costs (building rent, staff, internet) plus the food and electricity each resident uses. In our example, 40 beds at 85% occupancy and ₹9,500 a bed make ₹33,800 a month, a 10.5% margin. Below 29 filled beds, the same PG makes a loss.
PG profit calculator
Enter your beds, occupancy and rent per bed, then your monthly costs. The calculator shows your profit, margin and the occupancy you need to break even, with the working and a table of profit at other occupancy levels.
This calculator needs JavaScript. To work it out by hand: profit = (filled beds × rent per bed) − fixed costs − (filled beds × food and electricity per resident). Break-even beds = fixed costs ÷ (rent per bed − food and electricity per resident), rounded up.
Example numbers, not market averages
The calculator starts with example figures so you can see how it works. Costs differ a lot by city, area and how much the building owner charges, so replace every number with your own. Nothing you type leaves your phone or computer.
How do you calculate PG business profit?
Work out the rent you actually collect
Multiply the beds filled by the rent per bed. Use your average occupancy over the month, not the number on your best day. 40 beds at 85% is 34 filled beds; at ₹9,500 each that is ₹3,23,000.
Add up the fixed costs
These stay the same whether the PG is full or not: building rent or lease, staff salaries, internet and the rest. In the example: ₹1,00,000 + ₹45,000 + ₹5,000 + ₹10,000 = ₹1,60,000.
Add the costs for each resident
Food and electricity grow with every bed you fill. At ₹3,000 for food and ₹800 for electricity, 34 residents cost ₹1,29,200.
Subtract
₹3,23,000 − ₹1,60,000 − ₹1,29,200 = ₹33,800 a month. The margin is ₹33,800 ÷ ₹3,23,000 = 10.5%.
| Item | Working | Per month |
|---|---|---|
| Beds filled | 40 × 85% | 34 beds |
| Rent collected | 34 × ₹9,500 | ₹3,23,000 |
| Building lease | Fixed | ₹1,00,000 |
| Staff (cook, cleaner, warden) | Fixed | ₹45,000 |
| Internet and Wi-Fi | Fixed | ₹5,000 |
| Repairs, water, supplies | Fixed | ₹10,000 |
| Food | 34 × ₹3,000 | ₹1,02,000 |
| Electricity | 34 × ₹800 | ₹27,200 |
| Profit | ₹3,23,000 − ₹1,60,000 − ₹1,29,200 | ₹33,800 (10.5% margin) |
Profit here is before income tax and any loan EMIs. If you spent ₹8,00,000 setting up (beds, mattresses, kitchen, painting), ₹33,800 a month earns it back in about 24 months.
What occupancy does a PG need to break even?
Each filled bed brings in its rent minus what that resident costs you. In the example that is ₹9,500 − ₹3,800 = ₹5,700 a bed. The fixed costs of ₹1,60,000 need ₹1,60,000 ÷ ₹5,700 = 28.1 beds, so 29 of 40 beds (72.5% occupancy) is the break-even point.
| Occupancy | Beds filled | Profit a month | Margin |
|---|---|---|---|
| 60% | 24 | −₹23,200 (loss) | −10.2% |
| 70% | 28 | −₹400 (loss) | −0.2% |
| 80% | 32 | ₹22,400 | 7.4% |
| 85% | 34 | ₹33,800 | 10.5% |
| 90% | 36 | ₹45,200 | 13.2% |
| 100% | 40 | ₹68,000 | 17.9% |
The pattern holds for most PGs: every bed above break-even adds its full ₹5,700 to profit, and every empty bed below it takes the same amount away. That is why a few empty beds or a few residents who pay late hurt more than the numbers first suggest.
Is a PG business profitable?
It can be, but the answer depends on three numbers you control or can check before you sign a lease:
- The building rent as a share of full-occupancy income. In the example the lease is ₹1,00,000 against ₹3,80,000 at 100% occupancy, about 26%. The higher this share, the higher your break-even occupancy.
- Realistic occupancy. New PGs take months to fill, and beds near colleges or offices empty out in holidays. Run the calculator at 60% and 70% as well as your target.
- Rent per bed against food and electricity per resident. If you serve three meals, food is often your biggest cost that grows with residents. A rent increase of ₹500 a bed adds ₹17,000 a month at 34 residents; work out the new rent with the rent increase calculator.
Check the two costs owners most often underestimate
Electricity: split a real bill across residents with the PG electricity bill calculator before you decide whether to include it in rent. Food: plan a week's menu with the PG food menu maker and price the groceries for it.
How to improve a PG's profit
- Fill beds faster. Each empty bed costs its full contribution. A clear notice period means you hear about move-outs early; see the PG notice period and move-out checklist.
- Charge the right rent for part months. Residents who move in or out mid-month should pay for the days they stay; the prorated rent calculator does the working.
- Collect every bed's rent on time. Late rent does not change the profit on paper, but it leaves you paying the lease and salaries from your own pocket. A reminder a few days before the due date works better than chasing after it.
- Write your house rules down. Notice, deposit, food timings and electricity in one signed document prevent most disputes. Our PG rental agreement format lists the clauses.
When chasing rent across 30 beds gets tedious, Domvio does it on WhatsApp
Domvio sends each resident a WhatsApp reminder three days before rent is due, with the exact amount and a UPI link to your own account. You approve payments with one tap, log cash in one message, and see who has paid, who is pending and who is overdue. Every confirmed payment gets a PDF receipt. It is free during early access. Domvio does not track your expenses or calculate profit, so keep using this calculator for that. See PG management software.
Domvio collects rent from every PG bed on WhatsApp: a reminder before the due date, a UPI link to your own account and a PDF receipt for every payment. Free during early access.
Try Domvio freeFrequently asked questions
How much profit does a PG make per month?
It depends on beds, occupancy, rent and costs, so there is no single figure. In our example, a 40-bed PG at 85% occupancy and ₹9,500 a bed makes ₹33,800 a month on ₹1,60,000 of fixed costs. Put your own numbers into the calculator.
Is a PG business profitable in India?
It can be when occupancy stays comfortably above break-even. Work out the occupancy you need before you sign a lease: if you need 90% full to cover costs, a few empty beds will put you into a loss.
What is break-even occupancy for a PG?
The share of beds you must fill to cover every cost. Divide the fixed costs by the rent per bed minus the food and electricity each resident costs, and round up. For ₹1,60,000 fixed and ₹5,700 a bed, that is 29 beds.
What is a good profit margin for a PG?
We have no reliable survey of PG margins in India, so we do not quote one. Compare your margin at realistic occupancy with what the same money would earn elsewhere, and check how far occupancy can fall before you make a loss.
Should electricity be included in PG rent?
Either works. Including it is simpler but leaves you carrying summer bills. Charging it separately protects your margin. Use the PG electricity bill calculator to split a bill fairly.
Does Domvio calculate PG profit?
No. Domvio collects rent: WhatsApp reminders with a UPI link, one-tap payment approval, cash logging and PDF receipts, with a Paid, Pending and Overdue dashboard. Use this free calculator for profit.
Stop chasing rent every month
Domvio reminds your tenants on WhatsApp, takes rent straight to your UPI ID and sends PDF receipts automatically. Free during early access.