We’ve built the Airbnb income calculator which allows you to simulate your wealth generated by investing on a property and operate them as a short-term rental.
We’ve noticed that there is lack of good Short-term rental income calculator and ones that are available don’t clearly show how they reached to the numbers. The core engine of calculation is transparently available online. Feel free to add comments on our Gist.
Frequently asked questions
Most frequent questions and answers
What should I include in expense?
Monthly Expense: You should include 1) Repayment portion of mortgage 2) bills and utilities and 3) supplies fee. You should not include Cleaning Fees. It is because Airbnb guests are paying for cleaning fee, so it isn’t included in neither of ADR nor expense.
Yearly Expense: You should include 1) property depreciation 2) any other annual recurring fees.
What is a one-off cost?
One-off cost is the amount you spent when you purchase the properties (legal fees, refurbs, transaction fees, mortgage fees etc) and renovation. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return.
I'm confused with profit tax
In most countries, you need to pay tax for any profits generated from your properties. But, mostly, the way they calculate tax isn’t a flat rate. For example in the UK, you won’t have to pay tax for first certain amount of profit.
In this kind of case, you can first simulate the profit with 0% profit tax, then you will find out how much is your revenue and expense. Then, you can calculate yourself around how much % of tax you need to pay from your profit, then put that % in the profit tax section.