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Short-term rental ROI calculator

Stress-test a property with your nightly rate, occupancy, investment, and operating-cost assumptions.

Inputs stay on this device
Cash invested

This changes labels only; it does not convert exchange rates.

Unit: USD.
Unit: percent.
Unit: USD.
Unit: USD.
Annual operation
Unit: USD.
Unit: percent.
Unit: USD.

Include mortgage cash outflow, taxes, insurance, utilities, and recurring reserves.

Unit: percent of revenue.

Platform, management, and other revenue-linked costs.

Estimated cash-on-cash return: 12%. $11,180 annual operating profit

Estimated cash-on-cash return

12%

$11,180 annual operating profit

Annual profit is revenue minus the fixed and variable expenses entered here. Taxes and appreciation are not included.

Cash invested
$93,000
Annual revenue
$42,705
Booked nights / year
237.3
Cap rate
3.2%
Fixed costs / year
$26,400
Variable costs / year
$5,125

Annual revenue here is before a booking platform service fee. The Airbnb fee calculator estimates the guest total and host payout for one stay. How to estimate Airbnb ROI and break-even walks through these inputs with an illustrative example.

Method

What the result means

Core formula

cash-on-cash return = annual operating profit ÷ cash invested × 100
  • Revenue is the average nightly rate multiplied by 365 days and the occupancy percentage.
  • Fixed costs are annualized from the monthly figure; variable costs are a percentage of revenue.
  • Cash invested includes the down payment, closing costs, and initial furniture or setup.
  • The result excludes appreciation, income taxes, sale costs, and financing effects not included in your monthly expenses.

These are planning estimates, not financial, tax, legal, or market advice. Test conservative scenarios and verify important assumptions independently.

Questions

Before you use the result

Which expenses belong in monthly fixed expenses?

Include every recurring cash outflow that is not already covered by the variable-expense percentage: mortgage payments, property tax, insurance, utilities, software, maintenance reserves, permits, and fixed management charges.

How should I estimate occupancy?

Use at least three scenarios. Start with a conservative case, then a realistic base case, then an optimistic case. Seasonality and local restrictions can make a single annual average misleading.

What is the difference between cash-on-cash return and cap rate?

Cash-on-cash return compares operating profit with the cash you invested. Cap rate compares operating profit with the full property price. Both are planning metrics, and neither captures every financing or tax effect.

Can I use another currency?

Yes. Choose USD, EUR, GBP, CAD, AUD, or DOP in the calculator, then enter every amount in that currency. The selector changes labels and formatting; it does not convert exchange rates.

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