Vacation Rental ROI Calculator

Calculate Airbnb/VRBO profitability with nightly rate, occupancy, and all expenses.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Owning a Home

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Annual Cash Flow

-$6,657.40

Cap Rate

4.7%

Cash-on-Cash

-7.2%

Gross Revenue

$47.5K

NOI

$18,890.22

Occupancy Break-Even

73%

268 nights/year

Revenue & Expenses (Annual)

Gross Revenue (237 nights)$47,450.00
Platform Fees- $1,690.41
Management Fees- $11,269.38
Net Revenue$34,490.22
Insurance- $3,000.00
Property Tax- $5,000.00
Maintenance- $4,000.00
Utilities- $3,600.00
NOI$18,890.22
Mortgage- $25,547.62
Annual Cash Flow-$6,657.40
Monthly Cash Flow-$554.78

Vacation Rental vs Long-Term Rental

Vacation Rental Cash Flow-$6,657.40
Long-Term Rental Cash Flow-$17,387.62
Difference$10,730.22
Better OptionVacation Rental

Use the Vacation Rental ROI Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Return on investment is the number that tells you whether a short-term rental is actually worth owning. It frames the property as a financial asset, showing whether the income it throws off justifies the cash you put in and the costs of keeping it running, rather than leaving you to guess.

The calculator reports two returns. Cap rate divides net operating income (nightly revenue after platform and management fees, less insurance, property tax, maintenance and utilities) by the purchase price. Cash-on-cash return subtracts a year of payments on a 30-year mortgage and divides the cash flow left by the cash you put in, taken as the down payment plus an assumed 3% of the price for closing costs. Renovations and furnishing have no field, so if you spend on them up front, your real cash-on-cash return is lower than shown. Cleaning fees are treated as paying for the cleaning and left out of revenue, although the platform and management percentages are still charged on them. The results also show the occupancy you need to break even and compare the property with a long-term rental.

The accuracy of that percentage depends entirely on honest expense estimates. Build in unexpected repairs and stretches of vacancy, since leaving them out inflates the return into something the property can't deliver. If you intend to hand the day-to-day work to a management service, fold those fees in as well, because they take a real bite out of profitability.

Example: A $400,000 Vacation Rental at $200 a Night

  1. 1 Input a $400,000 property with 20% down at 7%, a $200 nightly rate and 65% occupancy, and keep the other defaults: 20% management, a 3% platform fee, a $150 cleaning fee, 4-night average stays, $3,000 of insurance, $5,000 of property tax, $4,000 of maintenance and $300 a month of utilities.
  2. 2 Revenue: 365 × 65% = 237.25 booked nights × $200 = $47,450. The platform and management fees are charged on that plus 59.3 stays × $150 of cleaning fees ($56,346.88 in all): $1,690.41 and $11,269.38, leaving net revenue of $34,490.22.
  3. 3 NOI: $34,490.22 − $3,000 − $5,000 − $4,000 − $3,600 = $18,890.22, a 4.7% cap rate on $400,000. The mortgage on $320,000 at 7% is $2,128.97 a month, $25,547.62 a year, so annual cash flow is −$6,657.40 (−$554.78 a month).
  4. 4 Cash-on-cash return: −$6,657.40 ÷ $92,000 ($80,000 down plus $12,000 of assumed closing costs) = −7.2%. Breaking even takes 268 booked nights, or 73% occupancy. Rented long term at $2,200 a month with 10% vacancy, the same property would lose $17,387.62 a year, so the vacation rental still comes out $10,730.22 a year ahead.

Source: CFPB — Owning a Home · Last updated: September 2026

Frequently Asked Questions

What is a good occupancy rate for a vacation rental?
AirDNA, which tracks Airbnb and Vrbo listings, put average U.S. short-term rental occupancy at 56.9% in 2025, against 56.7% in 2024. Individual markets and properties vary widely, and seasonal destinations swing between busy and quiet months. The calculator's 65% default is above that national average, so check it against local data and compare it with the break-even occupancy the calculator shows.
How much does a vacation rental make per year?
Revenue varies enormously by location, size, and amenities. At the calculator's defaults ($200 a night, 65% occupancy), a property books 237 nights and grosses $47,450 before cleaning fees. After platform and management fees, insurance, property tax, maintenance and utilities, $18,890.22 is left before the mortgage, and the payment on a $320,000 loan at 7% turns that into a loss of $6,657.40 a year.
What expenses should I include in vacation rental ROI?
Include mortgage/financing costs, property management (20-25% of revenue), cleaning fees, platform fees (on Airbnb, 3% for most hosts on the split-fee structure it is phasing out, or 15.5% for most hosts on the single-fee structure), utilities, insurance (short-term rental policies cost more), maintenance/repairs (1-2% of property value/year), furnishing costs, property taxes, and income taxes on rental income.

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