Estimate the profitability of a short-term rental property. Calculate net income, cap rate, and cash-on-cash return based on your property costs, rental income, and operating expenses.
Short-term rental insurance
Electric, water, gas, internet
Annual Gross Revenue
$43,496
Annual Net Income
$4,104
Cap Rate
7.4%
Cash-on-Cash Return
5.9%
Break-Even Occupancy
57%
Black marker = your current 65% occupancy
Projected monthly income based on typical seasonal occupancy rates.
Low Season
Jan, Feb, Nov (off-peak)
Occupancy: 35%
Revenue: $1,925
$-1,358
net loss / month
Average Season
Mar, Apr, Oct, Dec
Occupancy: 55%
Revenue: $3,025
$-258
net loss / month
High Season
May-Sep (peak summer)
Occupancy: 80%
Revenue: $4,400
$1,117
net profit / month
This calculator estimates your annual profit from a short-term rental property by comparing gross rental revenue against all operating expenses. It calculates three key metrics: net income (your actual profit after all expenses), cap rate (return on property value regardless of financing), and cash-on-cash return (return on the cash you actually invested). It also shows the break-even occupancy rate — the minimum occupancy needed to cover all costs.
A cap rate of 8-12% is generally considered good for short-term rental properties. Cap rate measures net operating income as a percentage of property value, excluding financing costs. Higher cap rates indicate better returns but may come with more risk or lower property appreciation potential. For comparison, traditional long-term rentals typically see 4-8% cap rates.
Average Airbnb occupancy rates range from 40-75% depending on location, season, and property type. Urban properties in popular destinations can see 60-80%, while rural or seasonal markets may average 30-50%. A conservative estimate for financial planning is 55-65%. Use data from AirDNA or local hosts to get market-specific numbers.
Common overlooked expenses include: higher utility bills (guests use more water, electricity, and HVAC), short-term rental insurance premiums (2-3x standard homeowners), supplies (toiletries, linens replacement, kitchen supplies), permits and licensing fees, accounting and tax preparation, and platform fees. Budget 5-10% of revenue for unexpected maintenance and repairs.
Airbnb's most common fee structure charges hosts about 3% per booking (split-fee model). Under the host-only fee model, hosts pay 14-16% but guests pay no service fee. VRBO charges hosts 5% per booking or a yearly subscription. Factor these platform fees into your profitability analysis.
Airbnb Income Calculator
Estimate your potential Airbnb rental income and profit. Enter nightly rate, occupancy rate, and expenses to project annual revenue, net income, and cash flow for your short-term rental.
ROI Calculator
Calculate return on investment for any project or purchase. Enter your initial investment and final value to see ROI percentage, annualized return, and net profit.