Vacation Rental ROI Calculator
Full return on investment analysis for a short-term rental property purchase.
Property & Purchase
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Annual Revenue
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Annual Operating Costs
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Results
Cash-on-Cash ROI
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annual cash return on cash invested
Cap Rate
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NOI ÷ purchase price
Annual Net Cash Flow
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after all costs & debt service
Gross Annual Revenue
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Total Annual Costs
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Total Cash Invested
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down + closing + furnishing
Understanding STR Return on Investment
Return on investment for a vacation rental is most accurately measured using two metrics: Cash-on-Cash Return (how much cash you earn relative to the cash you put in) and Cap Rate (the property's net operating income as a percentage of its value, independent of financing).
Cash-on-Cash ROI = Annual Net Cash Flow ÷ Total Cash Invested × 100
Cap Rate = Net Operating Income ÷ Purchase Price × 100
Cap Rate = Net Operating Income ÷ Purchase Price × 100
A cash-on-cash return of 8–12% is generally considered good for a short-term rental. Cap rates in vacation rental markets typically run 5–10%, varying significantly by location and property type.