The Airbnb Profitability Calculator is a crucial tool for hosts looking to understand the financial viability of their short-term rental property. It helps estimate the potential monthly net profit by considering various income streams and essential expenses associated with operating an Airbnb. By inputting key figures, hosts can make informed decisions about pricing, operational strategies, and overall investment.
How the Calculation Works:
The calculator uses the following logic to determine your estimated monthly net profit:
Gross Revenue: This is calculated by multiplying the Average Nightly Rate by the Average Number of Booked Nights per Month. The number of booked nights is derived from the Average Occupancy Rate (%) applied to the total days in a month (approximately 30.4 days on average).
Formula: (Average Daily Rate) * (Total Days in Month) * (Occupancy Rate / 100)
Guest-Paid Cleaning Fee Revenue: The Cleaning Fee per Booking is a direct revenue source. The calculator estimates the total cleaning revenue based on the number of bookings, which is assumed to be equal to the number of booked nights.
Formula: (Cleaning Fee per Booking) * (Number of Booked Nights)
Total Revenue: This is the sum of Gross Revenue and Guest-Paid Cleaning Fee Revenue.
Formula: Gross Revenue + Guest-Paid Cleaning Fee Revenue
Airbnb Host Fees: Airbnb typically charges a host service fee, which is a percentage of the booking subtotal (nightly rate + cleaning fee). This is factored in using the Airbnb Booking Fee (%).
Formula: (Gross Revenue + Guest-Paid Cleaning Fee Revenue) * (Airbnb Booking Fee Percentage / 100)
Management Fees: If you use a property management service, their fee is usually a percentage of the total booking revenue (before Airbnb's fees). This is applied using the Property Management Fee (%).
Formula: Gross Revenue * (Property Management Fee / 100)
Total Expenses: This includes the calculated Airbnb Host Fees, Management Fees, and any other fixed Monthly Other Expenses (e.g., utilities, internet, supplies, insurance, mortgage if applicable).
Formula: Airbnb Host Fees + Management Fees + Monthly Other Expenses
Net Profit: The final estimate of your profitability.
Formula: Total Revenue – Total Expenses
Key Inputs Explained:
Average Nightly Rate ($): The typical price you charge per night, excluding cleaning and other fees.
Average Occupancy Rate (%): The percentage of nights you expect your property to be booked out of the total available nights in a month. A higher occupancy means more bookings.
Property Management Fee (%): The commission charged by your property manager, if applicable.
Cleaning Fee per Booking ($): The fee you charge guests for cleaning after their stay. This revenue is passed on to you (minus host fees on it).
Airbnb Booking Fee (%): The percentage Airbnb charges hosts on their bookings. This can vary slightly, but a common rate is around 3%.
Monthly Other Expenses ($): Any recurring monthly costs not covered by the above categories (e.g., utilities, internet, supplies, mortgage/rent, property taxes, insurance).
Why Use This Calculator?
This calculator is essential for:
New Hosts: To estimate potential earnings before investing in a property or listing.
Existing Hosts: To periodically review and optimize pricing and expenses.
Investment Analysis: To compare the profitability of an Airbnb versus other investment types.
Remember, this calculator provides an estimate. Actual profits may vary based on seasonality, market demand, booking platform policies, and unforeseen expenses.
function calculateAirbnbProfit() {
var avgDailyRate = parseFloat(document.getElementById("averageDailyRate").value);
var occupancyRate = parseFloat(document.getElementById("nightsPerMonth").value);
var managementFeePerc = parseFloat(document.getElementById("monthlyManagementFee").value);
var cleaningFee = parseFloat(document.getElementById("cleaningFeePerBooking").value);
var bookingFeePerc = parseFloat(document.getElementById("bookingFeePercentage").value);
var otherExpenses = parseFloat(document.getElementById("monthlyOtherExpenses").value);
var resultDiv = document.getElementById("result-value");
resultDiv.innerHTML = "–"; // Reset result
// Validate inputs
if (isNaN(avgDailyRate) || isNaN(occupancyRate) || isNaN(managementFeePerc) ||
isNaN(cleaningFee) || isNaN(bookingFeePerc) || isNaN(otherExpenses)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (avgDailyRate < 0 || occupancyRate < 0 || managementFeePerc < 0 ||
cleaningFee < 0 || bookingFeePerc < 0 || otherExpenses 100 || managementFeePerc > 100 || bookingFeePerc > 100) {
alert("Percentage values cannot exceed 100.");
return;
}
var daysInMonth = 30.4; // Average days in a month
var bookedNights = Math.round((daysInMonth * occupancyRate) / 100); // Rounded to nearest whole night
var grossRevenue = avgDailyRate * bookedNights;
var guestCleaningRevenue = cleaningFee * bookedNights;
var totalRevenueBeforeFees = grossRevenue + guestCleaningRevenue;
var airbnbFeeAmount = totalRevenueBeforeFees * (bookingFeePerc / 100);
var managementFeeAmount = grossRevenue * (managementFeePerc / 100); // Management fee usually on gross revenue from nights
var totalExpenses = airbnbFeeAmount + managementFeeAmount + otherExpenses;
var netProfit = totalRevenueBeforeFees – totalExpenses – airbnbFeeAmount; // Subtracting Airbnb fee again because it was part of totalRevenueBeforeFees calculation, but we want it as an expense. Effectively: (Gross Revenue + Guest Cleaning Revenue) – Airbnb Fee – Management Fee – Other Expenses.
// Ensure net profit is not negative due to rounding or high fees, display 0 if it is.
if (netProfit < 0) {
netProfit = 0;
}
// Format the result to two decimal places
resultDiv.innerHTML = "$" + netProfit.toFixed(2);
}