Enter the average year-round occupancy rate (%) and the average daily rental rate ($/day) into the calculator to determine the Short Term Rental Profit.
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Short Term Rental Profit Formula
The following formula is used to calculate the Short Term Rental Profit.
STRP = OR / 100 * ADR * 365
- Where STRP is the Short Term Rental Profit ($/year)
- OR is the average year-round occupancy rate (%)
- ADR is the average daily rental rate ($/day)
How to Calculate Short Term Rental Profit?
The following example problems outline how to calculate Short Term Rental Profit.
Example Problem #1:
- First, determine the average year-round occupancy rate (%). In this example, the average year-round occupancy rate (%) is given as 50.
- Next, determine the average daily rental rate ($/day). For this problem, the average daily rental rate ($/day) is given as 150.
- Finally, calculate the Short Term Rental Profit using the equation above:
STRP = OR / 100 * ADR * 365
The values given above are inserted into the equation below:
STRP = 50/100*150*365 = 27,375 ($/year)
Example Problem #2:
The variables needed for this problem are provided below:
average year-round occupancy rate (%) = 60
average daily rental rate ($/day) = 250
Entering these values and solving gives:
STRP = OR / 100 * ADR * 365 = 54,750 ($/year)
