Short-Term Rental Investment Profitability Calculator
Analyze the cap rate, net operating income, monthly cash flow, and cash-on-cash return of a short-term rental (Airbnb/vacation rental) investment property based on nightly rate, occupancy, and operating costs.
Short-Term Rental Investment Formula
This calculator projects annual revenue from nightly bookings, subtracts platform fees, management fees, and operating expenses to find NOI, then layers in financing to estimate cash flow and cash-on-cash return — giving investors a cap-rate-based view of short-term rental profitability.
Unlike long-term rentals, short-term rental revenue depends heavily on occupancy rate and average nightly rate, both of which fluctuate seasonally and by market. Platform fees (e.g., booking site commissions) and professional management fees (often 15-30% of revenue for full-service STR management) are typically higher than for long-term rentals, and furnishing/setup costs represent an additional upfront investment beyond the down payment and closing costs.
How to Use the Short-Term Rental Investment Calculator
Enter the purchase price and financing details
Input the purchase price, down payment percentage, mortgage rate, and loan term.
Enter your average nightly rate and occupancy rate
Use comparable listings in the area (e.g., from AirDNA or similar tools) to estimate a realistic average nightly rate and annual occupancy percentage.
Enter platform and management fee percentages
Add the booking platform's commission and any property management fee as percentages of gross revenue.
Enter operating expenses
Add monthly operating costs (utilities, cleaning, supplies, internet) plus annual property tax and insurance.
Enter furnishing and closing costs
Add your one-time furnishing/setup budget and closing costs percentage to calculate total cash invested.
Click Calculate
View gross revenue, NOI, cap rate, monthly cash flow, and cash-on-cash return for the short-term rental investment.
Real-World Scenario Example
"An investor buys a $400,000 vacation property with 25% down at 7% interest over 30 years, renting it at an average of $250/night with 55% occupancy, an 18% management fee, and $1,200/month in operating expenses plus $15,000 in furnishing."
Inputs
Result
With about $50,200 in projected annual revenue at 55% occupancy, the property generates roughly $19,800 in NOI for a cap rate near 4.9%, with positive monthly cash flow after debt service producing a solid cash-on-cash return on the total cash invested.
Important Disclaimer
This calculator provides estimates for educational and planning purposes only. Short-term rental income is highly variable and depends on market demand, seasonality, local regulations, and management quality. Consult local short-term rental data sources, a real estate professional, and your local government's regulations before investing.
Related Calculators
Rental Cap Rate & Cash Flow Calculator
Estimate the cap rate, net operating income, monthly cash flow, and cash-on-cash return of a rental property based on purchase price, financing, income, and operating expenses.
House Flipping Profit Calculator
Calculate your potential profit on a house flip by comparing purchase price, rehab budget, holding costs, and financing against the after-repair value (ARV).
Home Insurance Cost Estimator
Estimate your annual and monthly homeowners insurance premium based on your state, dwelling coverage amount, deductible, coverage level, and claims history.