Vacation Rental Owners

Airbnb Profit Calculator: How It Works and Recommendations for Hosts

Airbnb Profit Calculator: How It Works and Recommendations for Hosts

An Airbnb profit calculator provides an answer to the question, “How much do Airbnb hosts make?” There are tons of tools available for the average Airbnb host to determine whether short-term rentals are worth the investment. Tools like an Airbnb income calculator and an Airbnb investment calculator offer valuable insights into projected revenue, expenses, and profits. Plus, even though some Airbnb host calculator tool options require a paid subscription, there are also multiple free Airbnb tools to calculate Airbnb profit. This article will cover what an Airbnb calculator is and what it can be used for. It’ll also provide links to several helpful calculators that hosts can use to predict their profits.

What Is an Airbnb Rental Profit Calculator?

Generally, an Airbnb rental profit calculator provides insights regarding the profitability of a specific vacation rental property. While every calculator is different, hosts will be able to find calculators that offer projections of the property’s average daily rate, occupancy rate, annual revenue, and more.

How Does an Airbnb Profit Calculator Work?

Most Airbnb profit calculators work by asking for various information about a rental property (its current value, the number of guests it can accommodate, various expenses, and more) and performing calculations using current metrics to offer valuable insights to hosts.

5 Uses for Rental Property Profit Calculators

  1. Those considering becoming Airbnb hosts can predict whether the endeavor will be profitable.
  2. People who own a second home can determine whether it’s worth it to transform their extra property into a short-term rental.
  3. Investors and property managers can use rental property profit calculators to gauge the value of new acquisitions and estimate the revenue they can earn from them.
  4. Airbnb rental arbitrage investors can figure out whether it’s better to market their properties as short-term or long-term rentals.
  5. Real estate agents can employ these calculators to help them advise buyers regarding the potential their properties have as vacation rentals.

Definitions of Terms Used in Rental Property Profit Calculators

Definitions of Terms Used in Rental Property Profit Calculators

While some calculators are simple and only ask for the property’s address and a few other pieces of information, others require more detailed data. Below, find some of the terms that rental property profit calculators commonly use.

Current Value

This refers to the property’s current value, which can easily be found on Zillow, Trulia, and other sites.

Monthly Mortgage

To get the most accurate results from an Airbnb profit calculator, it’s best to combine the principal, interest, and insurance to get a total number for your monthly mortgage.

Utilities

For Airbnb profit calculators, utilities consist of water, gas, electricity, landscaping, streaming services, and any other regular bills.

Number of Nights Booked

Hosts should give their best guess of how many nights a month they will book. This is one of the toughest numbers to estimate for new vacation rental hosts. If the vacation rental has been up and running for a while, hosts can look at previous months and use the average number of nights booked.

Number of Stays

The number of stays is slightly different from the number of nights booked. Let’s say a vacation rental property generally only gets weekend bookings. That would be an average of four stays per month.

Nightly Rate

A simple way to determine a vacation rental’s nightly rate (if one has not already been set) is to look at similar properties’ pricing strategies.

Expected Annual Cost of Repairs

The average residential homeowner can typically expect to spend about 1% of the house’s value in repairs each year. But for a vacation rental property, it’s wise to expect to spend about 2% of the property’s value on repairs each year. Generally, vacation rentals go through more wear and tear than the average residential home.

Cleaning Fee Charged

In an Airbnb profit calculator, this refers to the amount charged to guests as a cleaning fee.

Actual Cleaning Cost

Actual Cleaning Cost

This is the actual amount that hosts pay a cleaning crew between stays. If the host takes care of cleaning themselves, then the actual cleaning cost is made up of the cost of supplies.

Property Management Service Fee

Hosts who manage their own vacation rentals don’t need to worry about this figure. However, hosts who have hired a property manager or management company will need to input the amount or percentage of profit that they pay for this service.

Pricing Service

Those who work out their own pricing strategies don’t need to put in a number for pricing service. Hosts who use a third-party pricing service will input the amount they pay for it under the pricing service category.

Where to Find the Best Airbnb Profit Calculator

There are many Airbnb profit calculator options out there! The list below provides links and various details about each calculator that should prove useful to vacation rental hosts. Some calculators are totally free to use, while others require a subscription fee or one-time payment.

Mashvisor – Requires Subscription

Although Mashvisor requires a subscription (pricing starts at $17.99 per month), it provides a plethora of helpful information for hosts. Hosts can analyze cities to get an overview of investment properties in the area, complete with average cash on cash return, heat maps based on chosen criteria, and the number of properties in a given city. They can also look at individual neighborhoods to evaluate the area’s average income, home price, cash on cash return, Airbnb occupancy rate, and optimal strategy. There’s even nationwide data analysis and interactive filters that allow hosts to find the perfect property with a full breakdown of expenses.

Lodgify’s Vacation Rental Income Calculator – Free

Lodgify is one of the more affordable property management system options available today, and it also offers various resources for hosts, like its Airbnb profit calculator. Although it’s totally free to use the calculator, hosts will have to agree to receive emails from Lodgify to unlock their results. This calculator is easy to understand and use. It asks 15 simple questions about the property and provides three main insights: the property’s current revenue, the potential additional monthly revenue from OTAs (Online Travel Agencies), and the recommended channels where hosts should list their property.

Rentometer – Free 7-Day Trial

Rentometer - Free 7-Day Trial

Rentometer comes with a free seven-day subscription. After that, prices begin at $9 per month or $59 per year. Rentometer offers a huge range of data, from key rent metrics to comprehensive rent analysis, sample listing details, detailed property information, and professional features. There are tons of statistics, additional features, and helpful filters to aid hosts in their analyses.

Evolve’s Rental Income Calculator – Free

Evolve is a vacation rental listing site and management company that offers additional resources, such as its Airbnb profit calculator. The calculator is free and easy to operate; hosts just need to input various data contributing to their monthly revenue and monthly expenses. Then, Evolve’s calculator provides three annual totals based on the given information: gross revenue, total expenses, and total annual income. Evolve also has detailed information explaining exactly how to use the calculator and how to make the annual totals more accurate.

AirDNA Rentalizer – Some Information Free

AirDNA is considered the #1 intelligence platform for short-term rental hosts and investors, and its Rentalizer tool can be used for free, although some information can only be unlocked with a paid subscription. To analyze a property, AirDNA needs the address, number of bedrooms and bathrooms, and the number of guests it accommodates. Then, it provides the estimated operating expenses, net operating income, and cap rate. Hosts can also input more information at this point to make these estimates more accurate. With a subscription starting at $19 per month, hosts can also check out the Rentalizer estimate and seasonal revenue forecast, among other information.

BRIC Vacation Rental ROI Calculator – Free

BRIC Vacation Rentals is a listing site that also has some free resources, like its detailed vacation rental ROI calculator. This Airbnb profit calculator allows hosts to input several different types of information, including the purchase price, how long they plan to own the property, property management details, growth and inflation rates, and more. Based on this information, the calculator provides an estimated monthly return on investment, as well as various estimated costs and rental returns after a certain number of years. Finally, this ROI calculator from BRIC provides an estimated annual ROI percentage.

Vacasa Vacation Rental Property Income Calculator – Free

Vacasa Vacation Rental Property Income Calculator – Free

Vacasa is an international vacation rental management company, and it also has several free resources for vacation rental owners. Hosts will need to agree to receive emails from Vacasa to unlock information, but it’s completely free to use this calculator, and all hosts have to do is enter their address and the number of bedrooms and bathrooms. They can also select various amenities from a checklist.

Then, Vacasa analyzes the tourism market of the general area, the property’s micro-location, and its property value. It also compares the property with similar ones in the area. Vacasa’s Airbnb profit calculator provides an estimated yearly income range and then breaks that down into an estimated amount of income for each month. This allows hosts to see when their peak season and most profitable months of the year will be. According to Vacasa, over 70% of estimates are within 25% of the property’s actual rental income.

List Your Vacation Rental on RentalTrader

Looking to make more profit from your vacation rental property? RentalTrader can help! RentalTrader is all about making travel more cost-effective for both hosts and guests. Not only is it free to sign up and list your property, but RentalTrader only charges hosts 4.5% per booking–much less than most of the popular listing sites. What are you waiting for? List your vacation rental property on RentalTrader today.

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