Based on provided inputs and typical Airbnb revenue.
Understanding the Airbnb Revenue Calculation
The Rabbu Airbnb Calculator provides an estimate of the potential net income you can generate from your short-term rental property. This calculator simplifies the complex variables involved in short-term rental profitability by focusing on key metrics. Understanding these metrics is crucial for making informed investment decisions and optimizing your rental strategy.
Key Metrics Explained:
Average Nightly Rate: This is the price you charge guests per night. It should be competitive within your market and reflect the amenities and unique selling points of your property.
Occupancy Rate: This percentage represents how often your property is booked. A higher occupancy rate generally leads to higher revenue, but it's important to balance this with maintaining a good nightly rate. A typical target for many markets might be between 60% and 80%, but this can vary significantly by location and season.
Management Fee: If you use a property management company or platform that takes a percentage of your gross revenue, this fee needs to be factored in. This calculator assumes a percentage-based fee on gross revenue.
Cleaning Fee: This is a fee charged to guests per booking to cover the cost of cleaning the property between stays. It's important that this fee covers your actual cleaning expenses.
Monthly Operating Costs: These are the recurring expenses associated with running your rental property. They can include utilities, internet, property taxes, insurance, supplies, regular maintenance, and subscription services.
How the Calculation Works:
The calculator estimates your monthly net income using the following logic:
Gross Revenue Calculation:
First, we estimate the number of booked nights per month. This is done by taking the total number of days in a month (approximately 30.4 days on average) and multiplying it by your Occupancy Rate.
Booked Nights = 30.4 * (Occupancy Rate / 100)
Then, we calculate the potential gross revenue from nightly bookings.
Nightly Booking Revenue = Booked Nights * Average Nightly Rate
We also consider the revenue from cleaning fees. If we assume an average of 1 booking per 2.5 nights for simplicity (this is a variable that can differ), then:
Number of Bookings = Booked Nights / 2.5 Cleaning Fee Revenue = Number of Bookings * Cleaning Fee
The total gross revenue is the sum of nightly booking revenue and cleaning fee revenue.
Gross Monthly Revenue = Nightly Booking Revenue + Cleaning Fee Revenue
Deducting Expenses:
Next, we calculate the management fee based on the Gross Monthly Revenue.
Management Fee Amount = Gross Monthly Revenue * (Management Fee / 100)
The total monthly expenses include the calculated management fee and the fixed monthly operating costs.
Total Monthly Expenses = Management Fee Amount + Monthly Operating Costs
Net Income Calculation:
Finally, the estimated monthly net income is calculated by subtracting the total monthly expenses from the gross monthly revenue.
Net Monthly Income = Gross Monthly Revenue - Total Monthly Expenses
Total Monthly Expenses = $589.68 + $450 = $1,039.68
Net Monthly Income = $4,914 – $1,039.68 = $3,874.32
This example illustrates how different factors contribute to the overall profitability of an Airbnb listing. Use the calculator with your specific numbers for a personalized estimate.
function calculateAirbnbIncome() {
var nightlyRate = parseFloat(document.getElementById("nightlyRate").value);
var occupancyRate = parseFloat(document.getElementById("occupancyRate").value);
var managementFee = parseFloat(document.getElementById("managementFee").value);
var cleaningFee = parseFloat(document.getElementById("cleaningFee").value);
var monthlyOperatingCosts = parseFloat(document.getElementById("monthlyOperatingCosts").value);
var errorMessageDiv = document.getElementById("errorMessage");
var netIncomeDisplay = document.getElementById("netIncome");
errorMessageDiv.textContent = ""; // Clear previous error messages
netIncomeDisplay.textContent = "$0.00"; // Reset result
// Input validation
if (isNaN(nightlyRate) || nightlyRate <= 0 ||
isNaN(occupancyRate) || occupancyRate 100 ||
isNaN(managementFee) || managementFee 100 ||
isNaN(cleaningFee) || cleaningFee < 0 ||
isNaN(monthlyOperatingCosts) || monthlyOperatingCosts < 0) {
errorMessageDiv.textContent = "Please enter valid positive numbers for all fields. Occupancy and Management Fees should be between 0 and 100.";
return;
}
var averageDaysInMonth = 30.4; // Average days in a month
var assumedNightsPerBooking = 2.5; // Assumed average nights per booking – adjust if needed
var bookedNights = averageDaysInMonth * (occupancyRate / 100);
var nightlyBookingRevenue = bookedNights * nightlyRate;
// Estimate number of bookings based on average nights per booking
var numberOfBookings = bookedNights / assumedNightsPerBooking;
var cleaningFeeRevenue = numberOfBookings * cleaningFee;
var grossMonthlyRevenue = nightlyBookingRevenue + cleaningFeeRevenue;
var managementFeeAmount = grossMonthlyRevenue * (managementFee / 100);
var totalMonthlyExpenses = managementFeeAmount + monthlyOperatingCosts;
var netMonthlyIncome = grossMonthlyRevenue – totalMonthlyExpenses;
// Ensure net income is not negative due to high costs/low revenue
if (netMonthlyIncome < 0) {
netMonthlyIncome = 0;
}
netIncomeDisplay.textContent = "$" + netMonthlyIncome.toFixed(2);
}