Short-Term Rental Calculator
Estimate revenue and ROI for Airbnb and vacation rental properties.
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This calculator helps you evaluate the financial performance of an Airbnb or vacation rental property. Here is how to use it:
- Enter the purchase price and down payment. The down payment represents your total cash invested, which is used to calculate your return on investment.
- Set the nightly rate. Check comparable listings on Airbnb or VRBO in the area to estimate a realistic nightly rate. Factor in seasonal variation by using an average across all months.
- Estimate your occupancy rate. Most short-term rentals see 50-75% occupancy depending on location, seasonality, and pricing strategy. New listings often start around 40-50% and increase over time as reviews accumulate.
- Add cleaning fees and average stay length. Cleaning fees are charged per guest stay and help offset turnover costs. Average stay length affects how many turnovers you have per year. Shorter stays mean more cleaning fees collected but also more work.
- Set the platform fee. Airbnb typically charges hosts 3% per booking. VRBO charges around 3-5%. If you use direct bookings with no platform, enter 0.
- Enter monthly expenses. Include insurance, utilities, internet, supplies, maintenance, property management, and any other recurring costs. Monthly mortgage is entered separately.
Results update instantly as you type. Use the Share button to send a pre-filled link, or Copy to grab the result.
About Short-Term Rental ROI
Short-term rentals can generate significantly higher gross revenue than long-term rentals, but they also come with higher expenses and more management effort. This calculator factors in the key variables that affect your bottom line: nightly rate, occupancy, cleaning fees, platform fees, and operating expenses.
The ROI shown is a cash-on-cash return, measuring annual cash flow relative to your down payment. A positive cash flow means the property generates income after all expenses. A negative number means you are subsidizing the property each month. Keep in mind that this calculator does not account for tax benefits, appreciation, or equity buildup, which can improve overall returns.
All calculations run entirely in your browser. We never see or store your financial data.
Frequently Asked Questions
What occupancy rate should I expect for an Airbnb?
Occupancy rates for short-term rentals vary widely. Properties in popular tourist destinations can reach 70-85% annually. Urban rentals in strong markets see 60-75%. New listings typically start lower at 40-50% while building reviews. Use a conservative estimate of 55-65% for initial projections, and check AirDNA or local host groups for data specific to your market.
What expenses are unique to short-term rentals?
Short-term rentals have several costs that long-term rentals do not. These include higher utility bills (you pay all utilities), internet and streaming services, cleaning supplies and laundry, guest supplies (toiletries, coffee, etc.), furniture and decor, professional photography, dynamic pricing software, and potentially a property manager or co-host fee of 15-25% of revenue. Insurance premiums are also higher for short-term rental coverage.
How does the platform fee work?
Airbnb charges hosts a 3% service fee on most bookings under their split-fee structure. VRBO charges 3-5%. Some platforms offer a host-only fee option where the host pays a higher percentage (around 14-16%) and the guest sees no service fee. This calculator uses the host-side fee only. If you take direct bookings through your own website, you can avoid platform fees entirely, though you will have marketing and payment processing costs instead.
What is a good ROI for a short-term rental?
Many investors target 8-15% cash-on-cash return for short-term rentals, which is higher than the 5-10% commonly expected from long-term rentals. The higher target reflects the additional risk, management effort, and regulatory uncertainty involved. Markets with strong tourism demand and favorable regulations tend to produce the best returns. Always verify that short-term rentals are legal and properly permitted in your target area before investing.