When you’re first starting out as a vacation rental owner, there’s one big question: how much money can I expect to make?
Short-term rental properties can give second homeowners solid revenue returns, and are often more profitable than long-term rentals. But that additional income doesn’t come without costs. From vacation rental taxes and insurance to cleaning and management fees, it’s important to factor a number of expenses into your income calculations to help paint an accurate picture of your home’s profit potential.
That’s where our vacation rental income calculator comes in. Simply plug in your monthly revenue and expenses below, then watch our tool automatically churn out an annual income estimate — all factors considered.
Not sure where to pull all those numbers? Take a peek below our tool to understand your income and expense variables in more detail, and check out our bonus resources that can help you make confident estimates.
The first step in accurately predicting income? Defining each term properly. Here’s a quick-reference glossary of what each variable used in our vacation rental income calculator means.
Avg rate you expect to charge/night
Avg # of nights you expect to book/month
Your monthly mortgage payment
Monthly costs for heat/hot water, electricity/AC, wifi & cable
Insurance & Property Taxes
Monthly costs for homeowners insurance, liability insurance & property protection plan + your state’s property tax rate
Monthly sum of HOA & maintenance costs + avg cost of stocking/upgrading your short-term rental
Monthly % of income set aside for management/marketing fees (dependent on how you choose to run your property)
Let’s be real: calculating an accurate income for your investment property can be confusing. Certain elements — like mortgage and utility payments — have fairly standard numerical values you can enter into the calculator without much math. But other components require more contextual consideration, so let’s walk through each step of the process in more detail.
To accurately estimate nightly rate and expected nights booked, it’s important to understand the current market in your area.
The good news: we’ve analyzed thousands of listings across North America to aggregate the most influential performance metrics for you. From nightly rate and nights booked to average lengths of stay and prime booking windows throughout the year, all of the results can be found in our library of vacation rental market analyses. Each gives you a data-backed gauge of how direct competition performs — and, in turn, how much you can expect to charge and book.
You can pull the nightly rate and nights booked averages from those performance reports, then plug them into the vacation rental income calculator above to provide a solid foundation for estimating monthly income (and, ultimately, overall revenue).
But owners who work with Evolve also get the benefit of our proprietary SmartRates algorithm. It adjusts dynamically each night to guarantee your home always paces alongside rival listings — and outperforms in the long run. Case in point: SmartRates has earned our owners 24% more than traditionally-static pricing methods!
From taxes to marketing fees, your expense estimate relies heavily on custom quotes and individual choices.
First, add up the monthly costs of your different types of insurance — like homeowners insurance, liability insurance, and a property protection plan. (Evolve owners are automatically covered for accidental damages with our Property Protection Plus program.)
Then comes property taxes. How they’re applied varies by state, so be aware of your particular municipal requirements. If you’re not sure, you can plug your rental property’s address into this complimentary tool to receive the right rate.
Once you have an estimate for both, combine the numbers and enter the sum into our vacation rental income calculator.
Next, input your monthly mortgage payment and utilities.
If you need to make furniture or decor upgrades, put a price to those overarching updates and divide by 12 before adding to your total monthly view of those additional expenses.
Finally, there are management costs to consider. This figure will look different depending on how you choose to run your vacation rental.
If you run a vacation rental without any help:
If you use a property manager:
Between the steep fees of traditional property managers and the overwhelming responsibility of a DIY approach, it’s hard to strike a cost-benefit balance that guarantees your success. At least, it was until Evolve came into the picture.
For an industry-low management fee (that’s backed by our Risk-Free Guarantee), we’ll apply a data-proven marketing and booking strategy to your vacation rental, boosting your revenue potential while keeping costs (and stress levels) down.
See if you qualify or call one of our Vacation Rental Advisors today to learn more at 877.881.7584.