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Airbnb ROI Calculator

Make smarter investment decisions. Enter your property details to instantly calculate projected cash flow, cap rate, and annual returns for your Airbnb rental.

How to Use This Calculator

  1. Enter Property Details – Input the purchase price, down payment, and estimated renovation costs.
  2. Add Income Projections – Enter your expected nightly rate and occupancy percentage based on market research.
  3. Include Operating Expenses – Account for cleaning fees, utilities, insurance, property management, and Airbnb's service fee (typically 3-15%).
  4. Review Your Results – See your projected annual cash flow, cap rate, cash-on-cash return, and 5-year wealth projection.

What is a Good Airbnb ROI?

A strong Airbnb investment typically yields 8-12% annual ROI. Properties in high-demand vacation markets (beach towns, ski resorts, major cities) can achieve 15-20%+ returns. Key factors include:

  • Location – Proximity to tourist attractions, business districts, or unique experiences
  • Occupancy Rate – Aim for 65-75% as a baseline; 80%+ is excellent
  • Operating Efficiency – Minimize vacancy gaps and optimize pricing with tools like PriceLabs
  • Property Type – Unique properties (cabins, treehouses, beachfront) command premium rates

Airbnb vs Long-Term Rental: Which is Better?

Short-term rentals can generate 2-3x higher gross income than traditional leases, but come with trade-offs. Use our STR vs LTR Analysis Guide to make an informed decision.

Pro Tip

Before purchasing, research local short-term rental regulations. Many cities now require permits, limit rental days, or have zoning restrictions. Our Host FAQ covers common regulatory questions.