Vacation Rental ROI Calculator
Calculate Airbnb/VRBO profitability with nightly rate, occupancy, and all expenses.
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 Option | Vacation 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
This calculator helps you determine the potential return on investment (ROI) for a vacation rental property. Understanding your ROI is crucial for making informed investment decisions, ensuring your property generates a healthy profit and covers its costs.
The ROI is calculated by dividing the annual net rental income (gross rental income minus all operating expenses, including mortgage payments) by the total initial investment (purchase price plus closing costs and initial renovations). This provides a percentage representing your annual return.
Accurately estimate all expenses, including unexpected repairs or vacancy periods, to avoid overestimating your ROI. Don't forget to factor in property management fees if you plan to use a service, as these significantly impact profitability.
Example: Beachfront Condo Investment
- 1 You're considering a beachfront condo for $500,000. Closing costs are $15,000, and initial renovations cost $20,000. Your estimated annual rental income is $60,000, and annual operating expenses (including mortgage, taxes, insurance, and utilities) are $35,000.
- 2 Initial Investment = $500,000 (purchase) + $15,000 (closing) + $20,000 (renovations) = $535,000. Annual Net Income = $60,000 (rental income) - $35,000 (expenses) = $25,000. ROI = ($25,000 / $535,000) * 100.
- 3 The calculated ROI for your beachfront condo is approximately 4.67%.
- 4 A 4.67% ROI indicates the property generates nearly 5% of your initial investment back annually. Compare this to other investment opportunities and market averages to determine if it meets your financial goals and risk tolerance.
Source: CFPB — Owning a Home · Last updated: April 2026
Frequently Asked Questions
What is a good occupancy rate for a vacation rental?
How much does a vacation rental make per year?
What expenses should I include in vacation rental ROI?
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