Home›Airbnb Investment Calculator
Free STR Deal Analyzer
Airbnb Investment Calculator
Analyze any short-term rental deal before you commit. Enter the purchase price, financing terms and projected operating numbers — get a full deal score, capital requirement breakdown, cap rate and cash-on-cash return before you buy, not after.
—
/ 100
Deal Score
Enter your numbers below
📊
Renovation / Furnishing
—
Calculated Mortgage / Mo
—
Total Cash to Close & Launch
—
Total Operating Costs / Month
—
Cash-on-Cash Return
—
annual after-tax CF ÷ total cash invested
Cap Rate
—
annual NOI ÷ purchase price
Gross Revenue / Year
—
before any deductions
Net Operating Income / Year
—
after operating costs, before mortgage & tax
Monthly Cash Flow (After Tax)
—
what lands in your bank account
Cash Payback Period
—
years to recover total cash invested
🔒 Full Deal Report — Paid
5-year equity projection · Debt service coverage ratio · STR vs LTR comparison · Sensitivity to ADR / occupancy changes · Stress test scenarios
Enter your email to unlock
Free — see the full deal report instantly
No spam. Unsubscribe anytime.
How to Analyze an Airbnb Investment
The 6 numbers every STR investor must know
Most people buy an Airbnb investment based on optimistic projections from the listing or a host forum. The numbers that matter are different — and they need to be run conservatively before you commit capital.
01
Total upfront capital — not just the down payment. Include closing costs (2–5%) and full renovation/furnishing. Most first-time buyers undercount this by $10,000–$25,000.
02
Conservative occupancy estimate — use market average, not peak. A new listing typically runs 15–25% below market occupancy for the first 6 months while reviews build.
03
Cap rate ≥ 7% — the property's earning power independent of how you finance it. Below 6% means the asset is priced rich relative to its income.
04
Cash-on-cash return ≥ 8% — your actual return on invested capital after financing. This is the number that determines whether the deal beats alternative investments.
05
Monthly cash flow positive — even at low-season occupancy. A deal that only works at peak occupancy is not a deal — it's a bet on best-case conditions.
06
Debt service coverage ratio ≥ 1.25 — NOI should cover mortgage payments by at least 25%. Below 1.0 means you need personal income to subsidize the property every month.
FAQ
Common questions about Airbnb investing
How do I analyze an Airbnb investment property?
Calculate total upfront capital (down payment + closing costs + renovation/furnishing), project monthly revenue conservatively using market ADR and realistic occupancy, subtract all operating costs and debt service, then compute cap rate and cash-on-cash return. The calculator above does all of this automatically — enter your numbers and review the deal score and go/no-go checklist.
What is a good cap rate for an Airbnb investment?
A good cap rate for an Airbnb investment is generally 7–10%. Above 8% is considered strong. Below 5% suggests the property is priced high relative to its income potential. Tourist-heavy urban markets often trade at 5–7% while secondary or rural STR markets can yield 8–12%. Cap rate excludes financing so it is the right tool to compare deals independent of mortgage terms.
How much money do I need to start an Airbnb?
For rental arbitrage (leasing a property to sublet as STR), startup costs are typically $5,000–$15,000 covering first/last month rent, security deposit, furniture and supplies. For a property purchase, expect 25–30% of purchase price total — 20–25% down payment, 2–5% closing costs, plus $5,000–$30,000 for renovation and furnishing depending on property condition.
What is the 1% rule for Airbnb investments?
The 1% rule states monthly gross rent should be at least 1% of purchase price. For a $300,000 property that means $3,000/month gross. For Airbnb specifically, a 1.5–2% gross revenue ratio is more appropriate because STR operating costs (platform fees 14–16%, per-booking cleaning, higher maintenance) are significantly higher than long-term rentals.
Is Airbnb a good investment in 2025?
Airbnb can be a good investment in 2025 in the right market with the right numbers. Key factors: local regulations that allow short-term rentals, genuine tourism or business travel demand, ADR high enough to produce 20%+ net margin, and a purchase price that yields a cap rate of 7%+. Markets with STR oversupply, tightening regulation, or declining ADR present meaningfully higher risk. Run the numbers before you buy — not after.
Related Calculators
More STR analysis tools