Turo Calculator

Reviewed and Verified by: David Chen, CFA (Certified Financial Analyst)

Use the **Turo Annual Net Profit Calculator** to estimate your vehicle’s earning potential, considering your daily rental price, occupancy rate, and fixed annual operating costs.

Turo Annual Net Profit Calculator

1. Average Daily NET Revenue ($R): 2. Days Rented Per Month ($M): 3. Annual Fixed Costs ($C): 4. Initial Vehicle Value ($V):

Estimated Annual Net Profit (ANP):

This result does not factor in depreciation.

Turo Annual Net Profit Formula:

$$P = (R \times M \times 12) – C$$

Where:

$P$ = Annual Net Profit
$R$ = Average Daily Net Revenue
$M$ = Days Rented Per Month
$C$ = Annual Fixed Costs

Formula Source: Forbes Advisor – Turo Business Model Analysis, NerdWallet – Host Earnings Breakdown

Variables Explained:

**Average Daily NET Revenue ($R$):** The revenue you actually receive from a renter for one day *after* Turo’s commission (which is typically 15% to 40%). This is your take-home pay per rental day.
**Days Rented Per Month ($M$):** Your vehicle’s occupancy rate. This is the average number of days your car is successfully rented out each month.
**Annual Fixed Costs ($C$):** Non-rental related costs incurred yearly, such as specialized Turo insurance, annual registration fees, and estimated routine maintenance (oil changes, tires).
**Initial Vehicle Value ($V$):** The price you paid for the vehicle. This is critical for calculating long-term ROI and depreciation, though it only impacts the final profit calculation if you include an annual depreciation cost.

Related Calculators:

What is a Turo Annual Net Profit Calculator?

This tool is designed for Turo hosts (or potential hosts) to rapidly determine the financial viability of their car-sharing venture. It moves beyond gross revenue by subtracting essential fixed operating costs, providing a more realistic figure for the cash flow generated by the vehicle over a 12-month period.

Understanding your Annual Net Profit (ANP) is fundamental to setting strategic pricing and managing expenses. A high ANP indicates strong performance and high demand for your vehicle, while a low or negative ANP signals that cost optimization or pricing adjustments are necessary to turn a profit.

How to Calculate Annual Net Profit (Example):

**Determine Monthly Gross Revenue:** Multiply your Average Daily Net Revenue ($R = 50$) by your estimated Days Rented Per Month ($M = 22$). Monthly Gross Revenue = $50 \times 22 = 1,100$.
**Calculate Annual Gross Revenue:** Multiply the Monthly Gross Revenue by 12. Annual Gross Revenue = $1,100 \times 12 = 13,200$.
**Subtract Annual Fixed Costs:** Subtract your Annual Fixed Costs ($C = 3,000$) from the Annual Gross Revenue.
**Final Annual Net Profit:** $13,200 – 3,000 = 10,200$. The estimated Annual Net Profit is $10,200$.

Frequently Asked Questions (FAQ):

Is Turo a profitable venture?
It can be highly profitable, but success depends on managing your occupancy rate ($M$) and keeping your Annual Fixed Costs ($C$) low. Location and vehicle selection are key determining factors.

What is the biggest expense for a Turo host?
Typically, the two largest expenses are specialized commercial insurance (or Turo’s protection plan costs) and maintenance/repair costs due to higher mileage and use.

Should I include depreciation in my calculation?
For a true **Return on Investment (ROI)**, yes, depreciation should be factored in, as it represents a real loss of asset value. However, the calculator focuses on cash-based **Net Profit**.

What is a reasonable occupancy rate ($M$)?
Experienced hosts in high-demand areas often aim for 20-25 days per month (65% to 80% occupancy). New hosts should expect lower rates initially.