Short-Term Rental Revenue Calculator
Model a short-term rental purchase end to end: gross revenue from rate and occupancy, a full operating expense build, debt service, cash-on-cash return, and the year-one deduction a cost segregation study might produce. Everything updates as you type.
Results
This calculator is an illustration, not a projection or an offer. It assumes a fixed-rate amortising loan and steady occupancy across the year, which no real short-term rental has. It does not model seasonality, vacancy timing, closing costs, furnishing, lease-up, depreciation recapture, the excess business loss limitation, or state conformity to federal bonus depreciation. The tax figures assume you meet the seven day average stay test and materially participate. My BnB Accelerator, LLC is not a CPA firm and this is not tax advice. Confirm anything decision-critical with a qualified professional.
Frequently asked questions
How do you calculate short-term rental cash flow?
Start with gross revenue, which is average daily rate multiplied by occupancy multiplied by 365. Subtract management, cleaning, utilities, insurance, property tax, maintenance, and supplies to get net operating income. Subtract annual debt service to get net cash flow.
What cash-on-cash return should a short-term rental produce?
Five to fifteen percent before any tax benefit, depending on market, leverage, and rate. Below five percent the deal usually depends on the tax position, which means it depends on you meeting the seven day average and materially participating.
How much does cost segregation add in year one?
A study typically reclassifies 20 to 35 percent of purchase price into shorter depreciation lives. How much of that becomes an immediate deduction depends on the bonus depreciation percentage for the year the property is placed in service, so confirm the current figure with your CPA.
Is this calculator accurate?
It is an illustration, not a projection. It assumes steady occupancy across the year, which no real short-term rental has, and it ignores seasonality, closing costs, lease-up, depreciation recapture, the excess business loss limitation, and state conformity. Use it to test whether a deal is worth underwriting properly, not to decide.
Let us look at your numbers before you buy
Applications are reviewed individually. If short-term rentals are the wrong tool for your situation, we will say so on the first call.
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