FullCalculator

Vacation Rental ROI Calculator

Vacation Rental ROI

Calculate vacation rental return on investment

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Formula

ROI = (Annual Net Income / Cash Invested) x 100

Frequently Asked Questions

How do I calculate vacation rental ROI?
Vacation rental ROI = (Annual Net Income / Total Cash Invested) x 100. Include seasonal rate differences, varying occupancy rates, and all expenses (mortgage, management, cleaning, maintenance, insurance, taxes).
What is a good vacation rental ROI?
A good vacation rental ROI is typically 8-15% cash-on-cash return. This is higher than long-term rentals due to the extra management effort required. Returns vary significantly by location and seasonality.
How does personal use affect vacation rental ROI?
Personal use reduces rental income directly (fewer nights available) and can affect tax deductions. If personal use exceeds 14 days or 10% of rental days, the IRS may limit deductible expenses, reducing your effective return.

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