How short-term rental yields are calculated
Airbnb ROI depends heavily on nightly rates, occupancy rates, and operating expenses. The calculator estimates monthly gross revenue based on occupancy percentages and deducts Airbnb host fees (typically 3%), monthly mortgages, utilities, and maintenance to find net cash flows.
Unlike traditional long-term rentals, short-term rentals experience seasonal occupancy variations. It is crucial to use a blended average occupancy rate to ensure the property remains cash-flow positive during off-peak months.