Short Term Rental Profit Calculator

Formula

To calculate the Short Term Rental Profit ($STRP$):

\[ STRP = \frac{OR}{100} \times ADR \times 365 \]

Where:

$STRP$ is the Short Term Rental Profit ($/year)
$OR$ is the average year-round occupancy rate (%)
$ADR$ is the average daily rental rate ($/day)

What is Short Term Rental Profit?

Short term rental profit is the estimated annual income generated from renting out a property on a short-term basis. It is calculated based on the average occupancy rate and the average daily rental rate. This figure helps property owners and investors understand the potential profitability of their rental properties.

Example Calculation 1

Let's assume the following values:

Average Year-Round Occupancy Rate ($OR$) = 75%
Average Daily Rental Rate ($ADR$) = $100/day

Using the formula:

\[ STRP = \frac{75}{100} \times 100 \times 365 = 27375 \]

The Short Term Rental Profit is $27,375 per year.

Example Calculation 2

Let's assume the following values:

Average Year-Round Occupancy Rate ($OR$) = 60%
Average Daily Rental Rate ($ADR$) = $150/day

Using the formula:

\[ STRP = \frac{60}{100} \times 150 \times 365 = 32850 \]

The Short Term Rental Profit is $32,850 per year.