Enter the average year-round occupancy rate (%) and the average daily rental rate ($/day) into the calculator to determine the Short Term Rental Profit. ## Short Term Rental Profit Formula The following formula is used to calculate the Short Term Rental Profit. STRP = OR / 100 * ADR * 365 • Where STRP is the Short Term Rental Profit ($/year)
• OR is the average year-round occupancy rate (%)
• ADR is the average daily rental rate ($/day) ## How to Calculate Short Term Rental Profit? The following example problems outline how to calculate Short Term Rental Profit. Example Problem #1: 1. First, determine the average year-round occupancy rate (%). In this example, the average year-round occupancy rate (%) is given as 50. 2. Next, determine the average daily rental rate ($/day). For this problem, the average daily rental rate ($/day) is given as 150. 3. Finally, calculate the Short Term Rental Profit using the equation above: STRP = OR / 100 * ADR * 365 The values given above are inserted into the equation below: STRP = 50/100*150*365 = 27,375 ($/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)