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)