Free calculator
Short-term rental calculator
Enter the price, the loan and the expected revenue. See the cash flow, the return on your cash, and whether the deal still works if bookings are slower.
Cash flow by revenue and interest rate
| Revenue | 6.00% rate | 7.00% rate | 8.00% rate |
|---|---|---|---|
| — | — | — | — |
| — | — | — | — |
| — | — | — | — |
| — | — | — | — |
Five-year view
| Year | Cash flow | Loan balance | Equity | Total return |
|---|---|---|---|---|
| 1 | — | — | — | −27% |
| 2 | — | — | — | −12% |
| 3 | — | — | — | 4% |
| 4 | — | — | — | 22% |
| 5 | — | — | — | 40% |
Assumes revenue, costs and the home's value rise 3% a year. Total return is equity plus cash flow to date, less the cash invested, before tax and selling costs.
Questions
Where does the revenue figure come from?
You enter it. Use the results of similar homes nearby: same bedrooms, same area, a full year of bookings. In Stayager you can also request an estimate for an address.
What is the downside case?
The same deal with 20% less revenue and an interest rate one point higher. A deal that only works when everything goes right is a risk.
Which costs belong in each field?
Fixed costs are the ones you pay whether or not the home is booked: property tax, insurance, utilities, internet, software. Variable costs grow with bookings: cleaning, channel fees, supplies. The reserve covers repairs and replacements.
Is this financial advice?
No. These are estimates from the figures you enter. Confirm the loan with your lender, the rules with the city or county, and the tax treatment with your CPA.