Short-term rental
Airbnb cash-on-cash and cap rate.
Split the year into peak, shoulder and low seasons. See NOI, cap rate, cash-on-cash and the cash flow of your weakest season.
Cap rate = NOI / price. Cash-on-cash = (NOI - mortgage payments) / cash invested. The example earns an NOI of $27,130, a 6.78% cap rate and a 2.20% cash-on-cash return.
Your numbers
Result
Worked example
Booked nights are 225.1 (61.67% of the year) at a blended $216.76 a night. Gross revenue including cleaning fees is $55,540.83. Subtract Airbnb fees $8,608.83, cleaning and supplies $6,002.22 and operating costs $13,800.00 ($6,000 tax and insurance plus 12 x $650). NOI is $27,129.78, so cap rate is $27,129.78 / $400,000 = 6.78%. Mortgage payments are 12 x $2,030 = $24,360.00, leaving cash flow of $2,769.78 on $100,000 + $8,000 + $18,000 = $126,000.00 invested, a cash-on-cash return of 2.20%. The low season averages -$1,653.89 a month.
How it works
Each season's nights are months x 365/12 x occupancy. Revenue is nights x rate plus stays x cleaning fee. The seasons must total 12 months. Cap rate here uses NOI before mortgage; cash-on-cash deducts mortgage payments. Principal repayment is cash out of your pocket but builds equity, so it is not an expense in a true profit sense.
Not included: income tax, appreciation, vacancy from a bad year, and capital repairs beyond your reserve. Existing long-term cap rate tools exist on this site; this one is built around nightly rates, cleaning, platform fees and seasons.
Sources and basis (checked 2026-10-08): Airbnb can change its fees at any time, so check your own payout breakdown. Cap rate as net operating income divided by value, and cash-on-cash as annual before-tax cash flow divided by total cash invested, follow Capitalization rate - Wikipedia and Cash on cash return - Wikipedia, both opened 2026-10-08. Wikipedia notes cap rate has variations in how income is defined; this tool uses revenue less operating costs before debt. Fee levels from Airbnb service fees - Airbnb Help Centre. Not investment advice.
Not legal, tax or financial advice. Local licensing, zoning and tax rules vary. Everything runs in your browser. Nothing you type is sent or stored.
FAQ
Why use seasons instead of one average?
Short-term demand is uneven, and a month at 40% occupancy can lose money even when the year looks fine. Seasons show the weakest stretch you have to fund.
What counts as cash invested?
Down payment, closing costs and furnishing. Add renovation cash to the furnishing box if you spent some.
Is this the same as the long-term cap rate tool?
No. This one starts from nightly rates, occupancy, cleaning and platform fees by season. For a standard rental see the cap rate and cash-on-cash calculators linked below.