Vacation rental property calculator FAQs
How do I calculate my vacation rental income?
Our calculator uses the information you provide us about your rental property expenses and your revenue to calculate how much profit you make. If you’d like to have a more in depth breakdown of your costs, you can download our Short-term Rental Expense Spreadsheet.
What are the calculator’s recommendations based on?
Our recommendations take into account factors such as your vacation rental’s location, the technology you are using, and your current revenue. We’re using our internal data to estimate the additional profit you could make.
What variables does the vacation rental income calculator consider?
Our vacation rental income calculator takes into account the following variables: location, type of property, OTAs used, your rental income, your rental expenses and the technology used to manage your rental property.
How does the calculator work?
Our vacation rental calculator relies on the information you provide about your rental property business along with our internal data and external research to provide estimations of your revenue.
Is this a vacation rental ROI calculator too?
Our holiday rental calculator focuses on calculating your vacation rental income. You can use this simple formula to calculate the ROI of your vacation rental:
ROI = (Income from Investment – Cost of Investment)/Cost of Investment.
Your cost of investment must include all costs associated with your rental property including your mortgage, any repair costs, down payments, and any other one-time costs.
What is a good ROI for a vacation rental?
An ROI of 5-10% is considered a good ROI. Anything above 10% is great.
How much should you spend on purchasing a vacation rental property?
The amount you decide to spend on your vacation rental property will depend on many factors related to the type of property and your own preferences. We recommend not to spend more than 20% of your net worth on a vacation property so that the vacation property doesn’t feel like a burden. You can refer to our article on financing a vacation rental home for more tips. However, we believe that vacation rental investment will vary from one home owner to another.
What’s the average vacation rental income?
Vacation rental income depends on many factors related to the property. The income may vary depending on the type of property, location, size, amenities, and many other factors. According to a survey done by VRBO the average homeowner who rents out their second home earns more than $33,000 in yearly revenue. Again, this number could vary depending on your property specs.
How can I make more money from my vacation rental?
Using the right technology can help you optimize your resources and processes leading to more profit from your vacation rental business. Listing your property on the right channels based on your region can also improve your business profitability. Our short term rental income calculator will calculate how much more you can make from your property and offer you custom recommendations on how to take your business to the next level.
How can Lodgify make me more money from my vacation rental business?
Lodgify is an all-in-one software that was created to help vacation property owners take their business to the next level. Our software includes features that enable property owners to centralize, automate and optimize their processes. With our website builder you can create your own website and start receiving direct bookings for your property without having to pay OTA fees. You can try Lodgify for free to discover all the features that can help you boost your vacation rental revenue.