Worked Example: Benchmark Scenario: Short-Term Rental ROI
Project vacation rental RevPAR, annual gross bookings, and net cash flow.
- Enter the portfolio, option, lease, or corporate balance-sheet inputs.
- Evaluate the core equation: RevPAR = ADR × (Occupancy% / 100); AnnualGross = RevPAR × 365; NOI = AnnualGross × (1 − ExpenseRatio).
- Inspect the primary valuation output, risk metrics, and 3 visual SVG graphs.
Result: Computes Short-Term Rental ROI using RevPAR = ADR × (Occupancy% / 100); AnnualGross = RevPAR × 365; NOI = AnnualGross × (1 − ExpenseRatio).
Finance & Investing · Real Estate & Home Loans
Short-Term Rental (Airbnb / VRBO) RevPAR, ADR & Net Cash Flow Calculator: inputs, method, and how to read the result
Project vacation rental RevPAR, annual gross bookings, and net cash flow.
Choose inputs for the case you are checking
The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.
- Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
- Average Daily Rate: Average nightly rate charged to guests (ADR).
- Occupancy Rate Pct: Annual percentage of nights booked (%).
- Operating And Host Fee Pct: Combined platform fee, management, utilities, and fixed expenses (%).
What the calculation includes
With the default values shown, Annual Net Operating Income (STR) is USD 40,506.24. The calculation follows Short-Term Rental ROI Mathematical Formula; the formula and variable definitions above show how the inputs combine.
One-input check: With the other defaults held constant, changing Average Daily Rate from 240 USD/night to 264 USD/night changes Annual Net Operating Income (STR) from USD 40,506.24 to USD 44,556.86. This is a comparison inside the calculator's stated model, not a prediction.
Where to use caution
- Uses standard quantitative finance, GAAP/IFRS operating ratios, and continuous/periodic compounding conventions.
- For educational and analytical modeling only; consult a licensed CPA, CFA, or fiduciary advisor before executing tax or derivative transactions.
Scope: Global Financial & Corporate Valuation Standard Check the assumptions and limitations against your situation before relying on the estimate.
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