STR ROI & Cap Rate Calculator

Pressure-test a short-term-rental deal before you buy: enter the purchase, financing, revenue, and operating costs to see NOI, cap rate, cash-on-cash return, and monthly cash flow.

Deal inputs

Purchase & financing

$
%
%
yrs
Furnishing, closing, reserves
$

Revenue

$
%

Annual operating expenses

%
% of gross revenue
$
After cleaning fees collected
$
$
$
$
$

Results

Cap rate
—
Cash-on-cash
—
Annual NOI
—
Monthly cash flow
—
Gross annual revenue—
Operating expenses—
Net operating income (NOI)—
Annual debt service (mortgage)—
Annual pre-tax cash flow—
Loan amount—
Total cash invested—
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How to use this calculator

  1. Enter the dealPurchase price, your down payment, the rate and term you're quoted, plus closing and furnishing costs.
  2. Project revenueUse a realistic ADR and occupancy for the market — AirDNA or comparable nearby listings are good sources.
  3. Add real expensesDon't skip the maintenance reserve and management fee. Conservative inputs keep you out of trouble.

FAQ

How is cap rate calculated for a short-term rental?

Cap rate equals annual net operating income (NOI) divided by the purchase price, as a percentage. NOI is gross revenue minus operating expenses — but it excludes your mortgage. That lets you compare properties independent of financing.

What is a good cash-on-cash return for an Airbnb?

Cash-on-cash is annual pre-tax cash flow divided by total cash invested (down payment plus closing and startup costs). Many STR investors target 8–12%+, but the right number depends on your market, risk tolerance, and appreciation outlook.

Should I include my mortgage in the cap rate?

No. Cap rate deliberately excludes financing. Your mortgage does affect cash flow and cash-on-cash return, which is why both are shown separately above.

What expenses should I include?

Cleaning, supplies, utilities and internet, management/co-host fees, insurance, property taxes, and a maintenance/CapEx reserve. STR costs run higher than long-term rentals because of turnover and guest-facing services.

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