HomeProperty investingShort-term rental profit margin calculator
Money & mortgage

Short-term rental profit margin calculator

Estimate short-term rental revenue, stays, platform and cleaning costs, NOI, cash flow, and profit margins.

  • USD inputs · transparent calculation assumptions
  • Instant updates as inputs change
  • Data is calculated in this browser only
USD inputs · transparent calculation assumptions
Your scenario
Updates as you type
Estimated annual cash flow$18,815.83
Booked nights
255.5
Estimated stays
85.17
Gross booking revenue
$63,875.00
Platform fees
$8,942.50
Cleaning costs
$8,516.67
Net operating income
$40,415.83
NOI margin
63.27%
Cash-flow margin
29.46%
Cash-on-cash return
26.88%
Calculation notes

Understand the Short-term rental profit margin calculator

The Short-Term Rental Profit Margin Calculator validates every input, normalizes monthly and annual amounts, and calculates booked nights, stays, platform fees, cleaning costs, NOI, and cash flow from one consistent scenario.

Formula and logic

How does the Short-Term Rental Profit Margin Calculator calculate booked nights, stays, platform fees, cleaning costs, NOI, and cash flow?

Booked nights N = 365 × occupancy; stays = N / average stay length. Revenue R = N × nightly rate. NOI = R − platform rate × R − stays × cleaning cost − other annual expenses. Cash flow = NOI − 12 × monthly mortgage; each margin divides its profit measure by R.

Worked example

What does a worked Short-Term Rental Profit Margin Calculator example show?

At $200 a night, 60% occupancy and three nights per stay, there are 219 nights and 73 stays. Revenue is $43,800. A 3% platform fee, $80 cleaning per stay and $10,000 other costs leave $26,646 NOI; $1,500 monthly mortgage leaves $8,646 cash flow.

How to read the result

How should I interpret the Short-Term Rental Profit Margin Calculator results?

  • NOI margin excludes financing; cash-flow margin includes the full entered mortgage payment.
  • Shorter stays increase cleaning costs even when occupied nights and room revenue are unchanged.
Limits and assumptions

Which costs, rules, or risks are outside the Short-Term Rental Profit Margin Calculator?

  • Assumes uniform annual occupancy and no cleaning-fee revenue. Seasonal prices, lodging tax, licensing, repairs and initial closing costs require separate budgeting.

Content and calculation reviewed:

Understand the calculation

How to use it and the math behind it

Read the complete explanation

Four steps to check your inputs and results

  1. Confirm currency and monthly versus annual amounts. U.S. tax and loan models should be used within their stated scope.
  2. Prepare Property purchase price, Down payment, Monthly mortgage payment, Average daily rate, Occupancy rate, Average stay length, Platform service fee, Cleaning cost per stay, Other annual operating expenses. Defaults demonstrate the model rather than your personal circumstances.
  3. Check the headline result and its components. A key interpretation for this tool is: NOI margin excludes financing; cash-flow margin includes the full entered mortgage payment.
  4. Compare the baseline with a changed scenario: Shorter stays increase cleaning costs even when occupied nights and room revenue are unchanged.

A cash-flow waterfall and scenario sensitivity

Income and costs form successive layers. Subtracting financing before computing NOI changes the definition and distorts cap-rate comparisons. Principal repayment uses cash but can also build equity, so a tax profit, operating profit and cash-flow result may legitimately differ.

Effective income = potential income × (1 − vacancy)
NOI = effective income − operating expenses
Cash flow = NOI − debt service
DSCR = NOI / debt service

The detailed guide adds variable definitions, a reproducible example, a practice question and model limitations.