PG Operating Cash Planning: A 50-Bed Example
Compare entered rent, occupancy, collection assumptions and operating costs. A clear worked example with a private, browser-only planning calculator.
Separate rent billed, cash you expect to receive and the costs included in your scenario. The difference is an operating cash estimate, not accounting net profit, a forecast of bookings or an investment recommendation.
Define the inputs before calculating
- Available beds: beds actually available for use in the scenario.
- Occupied beds: your assumed occupied count, not a list of enquiries.
- Average monthly rent: the contracted per-occupied-bed assumption.
- Collection percentage: the part of billed rent assumed received in the month.
- Costs: fixed monthly costs plus an entered cost per occupied bed.
- Other receipts: operating cash only; exclude refundable deposits.
A fictional 50-bed example
| Input or result | Example |
|---|---|
| Available / occupied beds | 50 / 40 |
| Average monthly rent | ₹7,000 |
| Assumed rent collection | 95% |
| Other operating receipts | ₹0 |
| Fixed costs / cost per occupied bed | ₹1,00,000 / ₹2,000 |
| Rent billed | ₹2,80,000 |
| Expected receipts | ₹2,66,000 |
| Operating costs | ₹1,80,000 |
| Estimated operating surplus | ₹86,000 |
These figures are demonstration assumptions, not market averages. The example excludes deposits, capital expenditure, financing and tax. Replacing any input changes the answer. Do not use its result as a promise that a similar property will achieve the same outcome.
Understand a shortfall
With no occupied beds and no other receipts, receipts are zero while fixed costs remain. The result is negative fixed costs. A margin cannot be calculated with zero receipts. Showing a shortfall is more useful than hiding it behind a zero result.
Compare scenarios you can explain
Change one input at a time, such as occupied beds or entered costs, and record the assumption. A higher occupancy assumption is not evidence that the beds will fill. A better rent record can help review operations; it does not create demand or guarantee payments.
The cash-planning calculator keeps inputs in the browser. For the inventory denominator, use the bed occupancy guide. For actual operational records, explore rent management.