Short-Term Rental ROI Calculator
Compare short-term rental returns against long-term rental and selling. See projected cash-on-cash return and cap rate.
STR vs Long-Term Rental
Frequently asked questions
What is a good ROI for a short-term rental?
Many investors target 8-12% cash-on-cash return for a well-run STR. Anything above 15% is excellent; below 5% usually means the purchase price, financing, or occupancy assumptions need another look.
How do you calculate cap rate for a short-term rental?
Net operating income (annual revenue minus all operating expenses, excluding mortgage payments) divided by purchase price. STR cap rates typically land 2-4 points higher than long-term rentals in the same market, reflecting the extra work and risk.
Is short-term renting more profitable than a long-term lease?
Gross revenue is often 2-3x higher, but expenses (cleaning, utilities, supplies, management, vacancy) eat a much larger share. Net, a well-located STR usually beats long-term rent, but a poorly located one can underperform it.
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