Short-Term Rental ROI Calculator
Analyze owned short-term rental property returns — from gross revenue and operating expenses to net yield, cap rate, and 10-year wealth projection.
STR Annual ROI Calculator
Calculate annual cash-on-cash return and cap rate for an owned STR property.
STR vs. Long-Term Rental Comparison
Compare annual net income between short-term and long-term rental strategies.
10-Year STR Wealth Projector
Project total wealth creation from a STR property over 10 years including appreciation and equity.
Short-Term Rental Investment: What the Numbers Actually Show
The STR market has matured significantly since the early Airbnb gold rush. Today's successful STR investors approach the business with institutional-grade underwriting — detailed occupancy modeling, realistic expense ratios, and thorough regulatory due diligence. The top operators consistently achieve 12–18% cash-on-cash returns by focusing on high-demand markets, professional design and photography, and dynamic pricing software.
The 45% Expense Ratio Rule
Industry veterans typically underwrite STR properties assuming 40–50% of gross revenue goes to operating expenses. This includes: platform fees (3–5%), property management (20–25%), cleaning (8–12%), insurance premium (3–4%), supplies and maintenance (3–5%), and utilities (4–6%). Properties managed by owners directly can reduce this to 30–35%, significantly boosting returns.
Dynamic Pricing and Revenue Management
Tools like PriceLabs, Wheelhouse, and Beyond Pricing use algorithms to optimize nightly rates based on local demand, events, seasonality, and competitor pricing. Properties using dynamic pricing tools average 10–25% higher annual revenue than manually-priced listings. At scale, this revenue management advantage compounds dramatically across a portfolio.