Set your average booking value, deposit percentage and expected cancellation rate, then build your cancellation policy as a set of refund tiers. The tool works out expected refunds, retained deposit revenue, and the net revenue you're still exposed to after accounting for the chance of rebooking a cancelled date.
| Tier | Days Before Arrival | Refund of Deposit (%) | Share of Cancellations (%) | Cancellations | Refund Paid | Retained |
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A larger deposit protects more revenue per cancellation but can discourage some guests from booking at all, particularly for lower-value or last-minute stays. Test your deposit level against your typical booking lead time and market.
Look at your actual cancellation history to estimate the share of cancellations in each window, rather than guessing. Late cancellations are usually harder to rebook, so a stricter refund tier close to arrival is generally justified.
A high season, high demand property might rebook most cancelled dates, making the true revenue at risk much lower than the headline booking value suggests. A low season or niche property should assume a lower rebooking probability and price its deposit accordingly.
State the deposit amount and each refund tier clearly at the point of booking, ideally with exact dates rather than "days before arrival" once a booking is confirmed, to avoid disputes at cancellation time.
This calculator provides estimates based on the figures you enter. JWBIZ Ltd accepts no liability for pricing or policy decisions made on the basis of this tool.