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)