Airbnb Investment Return Calculator
Property & Purchase Details
Financing Details (Optional)
Income Projection (Annual Estimates)
Operating Expenses (Annual Estimates)
Return Analysis & Summary
Enter details in previous tabs and click "Calculate Returns" to see the analysis.
Understanding Your Results:
- Net Operating Income (NOI): Your property's annual income after all operating expenses, but *before* mortgage payments (debt service) and income taxes. This is a key indicator of a property's inherent profitability.
- Cash Flow (Before Tax): The actual cash projected to be left in your pocket annually after paying operating expenses AND mortgage payments (if financed). This is a crucial measure of an investment's ability to generate spendable income.
- Cap Rate (Capitalization Rate): Calculated as `NOI / (Purchase Price + Initial Setup Costs)`. It represents the unlevered annual rate of return on the property's total cost. It's useful for comparing the relative value of different properties independent of financing.
- Cash-on-Cash Return: Calculated as `Annual Cash Flow / Total Cash Invested`. "Total Cash Invested" includes your down payment (if financed, otherwise full purchase price for cash buy) plus all initial setup/closing costs. This metric shows the return on your actual out-of-pocket cash.