Airbnb Calculator - Predict Short-Term Rental Revenue (2024)

Rentalizer™

Calculate the earning potential of any address. For free.

Did you know short-term rentals earn up to three times more than traditional long-term rentals? Rentalizer™ uses data from over 10 million Airbnb and Vrbo listings to accurately predict earning potential for any property in the world.

  • Determine if it’s a good time to buy a property.
  • See how a property will perform over time based on seasonality.
  • Estimate how your vacation rental will appreciate or depreciate over time.

How much can I make on Airbnb?

We believe the best way to figure out how much you can make on Airbnb is by looking at what existing, nearby short-term rentals actually make every year. The Rentalizer Airbnb calculator lets you plug in relevant details—like the number of bedrooms, bathrooms, and occupants—to see what nearby homes with that configuration make every year, plus their occupancy rates. Add in more details like estimated fees, insurance, utilities, and setup costs to get a projected Cap Rate percentage. Together, this gives you an accurate prediction of the annual revenue you can make with an Airbnb.

How do I estimate the Airbnb income for a specific property?

Have a specific property in mind? Plug the address into the Rentalizer Airbnb calculator, make sure the number of bedrooms, bathrooms, and guests is correct, and adjust your operating and setup costs (if you know them) to see what that particular property could make if you list it full time. We base our projections on the real market performance of similar nearby listings to be as accurate as possible.

Is investing in a vacation rental worth it?

Investing in a vacation rental has many benefits—from additional income to having a vacation getaway for your family. But making the right investment is key if you expect it to be profitable. Before you go under contract, check the projected revenue potential of your dream property with a trusted Airbnb calculator.

How does AirDNA's Rentalizer Airbnb calculator work?

We put a lot of thought into making Rentalizer the most accurate Airbnb calculator out there. This page details how it works and what type of insights you'll get. Better yet—see it in action for yourself by trying Rentalizer for free!

Unlock your vacation rental cheat code.

AirDNA’s powerful yet easy-to-use tools make hosting and investing a breeze. This means having every insight you need, all in one place, always up-to-date.

Certainly! To give you a thorough understanding, let's break down the concepts and terms used in the article about Rentalizer™ and Airbnb rental potential.

  1. Short-Term Rentals vs. Long-Term Rentals: The article emphasizes that short-term rentals, like those on Airbnb and Vrbo, tend to generate significantly higher income compared to traditional long-term rentals. This claim aligns with industry data and trends. Short-term rentals often attract more revenue due to their flexibility and the ability to charge higher rates for short stays.

  2. Data Analysis and Prediction: Rentalizer™ utilizes a vast database of over 10 million Airbnb and Vrbo listings. This data is analyzed to predict the earning potential of any property globally. The algorithm likely considers various factors like property characteristics, location, seasonality, and comparable nearby listings to estimate potential earnings accurately.

  3. Determining Property Performance: The tool not only predicts the potential income but also helps in assessing the performance of a property over time based on seasonal fluctuations. This allows users to make informed decisions about property investment or rental strategy.

  4. Calculating Revenue and Costs: Users input specific details about a property, such as the number of bedrooms, bathrooms, and estimated occupancy. The Rentalizer™ then generates projected annual revenue based on nearby listings with similar configurations. Additionally, users can include operating costs like fees, insurance, utilities, and setup expenses to compute a projected Cap Rate percentage, aiding in a more accurate financial projection.

  5. Property-Specific Estimations: The tool allows for precise estimations by inputting a specific property address. By adjusting details like the number of bedrooms, bathrooms, and guests, along with operational and setup costs, the calculator predicts the potential income of that particular property if listed full time. This specificity enhances the accuracy of revenue projections.

  6. Investment Evaluation: Rentalizer™ assists in evaluating the worthiness of investing in vacation rentals. It helps prospective investors gauge the potential revenue of a property before making any financial commitments. This aligns with the broader advice of assessing the profitability of an investment before finalizing a purchase.

  7. Functionality and Accuracy: AirDNA's Rentalizer™ claims to be a highly accurate Airbnb calculator, employing robust methodologies and real-market performance data from similar nearby listings to provide accurate revenue projections. The platform aims to offer users insights into the potential profitability of their vacation rentals.

  8. User-Friendly Interface: The article emphasizes the tool's user-friendliness, highlighting its ease of use and comprehensive insights, positioning it as a valuable resource for hosts and investors in the vacation rental market.

By understanding these concepts, individuals can use Rentalizer™ to make informed decisions about investing in and managing vacation rental properties.

Airbnb Calculator - Predict Short-Term Rental Revenue (2024)

FAQs

How do you calculate if an Airbnb will be profitable? ›

How much can I make on Airbnb? A simple way to calculate your Airbnb revenue is by multiplying the year-round occupancy rate and your average daily rate. If you charge $150/night and achieve a 70% occupancy rate, you will make around $150*0.70*365, which is $38,325 before expenses and taxes.

How do you calculate short-term rental profitability? ›

Multiply the average daily rate rate by the estimated occupancy rate to get the average daily rental income. Calculate monthly rental income by multiplying the average daily rental income by the number of days in a month.

What is the ROI on short-term rental investment? ›

Short term properties typically yield higher return rates of around 10 to 15%. There are many different theories as to what is the appropriate return on investment (ROI) for a rental property. Cap rates vary from city to city and even neighborhood to neighborhood.

How do you calculate ROI on Airbnb? ›

Our income calculator focuses on calculating your Airbnb income. You can use this simple formula to calculate the ROI of your vacation rental: ROI = (Income from Investment – Cost of Investment)/Cost of Investment.

What is a good profit margin for an Airbnb? ›

Average net profit margin for a Airbnb business

The average net profit margin for an Airbnb business was -11%. This might seem shocking, but you need to keep in mind a couple of things. Once you add back in depreciation which amounted to 12%, Airbnb businesses are actually breakeven or slightly profitable on average.

How much profit does an average Airbnb host make? ›

Average Annual Host Revenue By Arrangement Type: 2021/2020
ARRANGEMENT TYPEAVERAGE ANNUAL HOST EARNINGS 2021AVERAGE ANNUAL HOST EARNINGS 2020
Entire Home$14,498$8,749
Hotel Room$8,452$4,885
Private Room$5,260$2,994
Shared Room$2,158$1,536

What is the average profit for a short-term rental property? ›

According to industry reports, the average profit margin for a short-term rental property can range from 25% to 50%, with some properties earning even higher margins. However, it's important to note that these margins can be affected by a variety of factors.

How accurate are AirDNA estimates? ›

If you're wondering about the data accuracy of AirDNA, let's take a look at what its website claims. Based on AirDNA's website, CBRE estimates that the platform's data related to the active supply of vacation rentals is 97.5% accurate. Similarly, the data about the revenue earned by hosts is deemed 96.2% accurate.

How much do Airbnb hosts make on average per month? ›

What Is the Average Airbnb Host Salary by State
StateAnnual SalaryMonthly Pay
California$37,509$3,125
North Carolina$37,432$3,119
Massachusetts$37,405$3,117
Oklahoma$37,372$3,114
46 more rows

How do you calculate return on short-term rentals? ›

How do you calculate the rate of return on a rental property?
  1. ROI = (Income from Investment – Cost of Investment)/Cost of Investment.
  2. ROI = ($120,000 – $100,000)/$50,000 = 0.2 = 20%
  3. Step 1 – Net Operating Income = Rental Income – Operating Expenses.
  4. Step 2 – Cap Rate = Net Operating Income/Purchase Price × 100%
Oct 27, 2020

What is a realistic ROI for rental property? ›

In general, a good ROI on rental properties is between 5-10% which compares to the average investment return from stocks.

What is a good monthly ROI on rental property? ›

While what constitutes a 'good' rate can vary depending on an individual's investment strategy, location, and market conditions, generally, a return between 6% and 8% is considered decent, while a return of 10% or more is viewed as excellent.

What is the Airbnb formula? ›

What is BNB Formula? BNB Formula is an online training program designed by Brian Page. It focuses on teaching individuals how to build a profitable short-term rental business using Airbnb without actually owning any property.

What is the expected return on Airbnb? ›

There is no one answer to “How profitable is owning an Airbnb?” Airbnb investors' earnings vary based on several factors, including property location, size, seasonality, and occupancy rates. On average, Airbnb hosts can expect to earn anywhere from a few hundred to several thousand dollars per month in rental income.

How do you project vacation rental income? ›

To estimate your vacation rental income, you'll need to know your average nightly rate, average nights booked, and monthly expenses. By multiplying your average nightly rate and average nights booked, you'll be able to project your average monthly income.

How do you calculate return on short term rentals? ›

How do you calculate the rate of return on a rental property?
  1. ROI = (Income from Investment – Cost of Investment)/Cost of Investment.
  2. ROI = ($120,000 – $100,000)/$50,000 = 0.2 = 20%
  3. Step 1 – Net Operating Income = Rental Income – Operating Expenses.
  4. Step 2 – Cap Rate = Net Operating Income/Purchase Price × 100%
Oct 27, 2020

How are short-term rental rates calculated? ›

To calculate the NOI, simply take your total rental income and subtract your total operating expenses. To calculate your property's cap rate, divide the net operating income by the current market value of your property.

How to calculate if a short-term rental is a good investment? ›

As such, here are some of the main factors to consider when performing a short-term rental market analysis.
  1. Choose a Location.
  2. Determine the Demand.
  3. Consider Seasonal Activities.
  4. Look at the Property Type.
  5. Calculate Occupancy Rates.
  6. Estimate Your Income.
  7. Factor in Expenses.
Nov 15, 2023

How do you value a short-term rental? ›

The rent-to-value ratio is the yearly rental income you earned against the overall value of the property. Bear in mind that it varies between 3% and 10% though preferably consider vacation rental properties that have the rent-to-value ratio of 5% or more.

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