What data do you get from the Airbnb Profit Calculator? Try it here or read on! Our tool, also called airbnb investment calculator, will give you:
- Annual Revenue
- Average Daily Rate
- Occupancy Rate
- 12-month future forecasts
- An analysis of similar rentals in your neighborhood
Annual Revenue estimation with the Airbnb Investment Calculator
With our calculator you are able to calculate an the approximate predicted earnings for properties similar to yours in the same postal or zipcode.
You might see for example that a 2 bed in the vicinity has very different prospects from a 3 or 4 bed. Or maybe apartments are more profitable than houses. Of course it always pays to understand which locations give the best return on investment.
This allows private investors, investment companies, owners and property managers alike to make optimal prospecting and investment choices.
For property managers, it also produces a report of projected earnings ideal for giving clients an accurate and reassuring expectation of performance and return.
Average Daily Rate through the Airbnb Profit Calculator
Just as useful and important as an accurate revenue projection for owners and property managers alike, is a benchmark for average daily rate (ADR).
Better than that, the Airbnb Investment Calculator gives a seasonal take on ADR. With a benchmark achievable rate for each month, operators and owners alike can tailor a property’s rates for the market climate. That way, realistic and achievable pricing is ensured.
For short term rental property managers, it is also evidence of a reasoned approach, where owners will often have (optimistic) expectations about how much their property should be advertised for. Data-based proof of the optimal approach helps to make it more credible.
A good starting point for a listing is crucial to its long-term success. Using our Airbnb Revenue Calculator to base your pricing on the listings in the vicinity of your own, with the same features and amenities, means that potential guests are seeing very realistic, reasonable prices.
Remember, when you set a new listing live, it has no reviews – and therefore trust – in the eyes of the guest. It is important to be open to reducing your early rates to secure the all-important reviews.
Occupancy Rate on the Airbnb Investment Calculator
As with ADR, a projection of occupancy can give an appropriate target. Understanding what level of occupancy should be achieved for a given price point in your market really helps you to understand whether your listing is ‘over’ or underperforming.
For property managers, this is not just a projection to aim for; although this is invaluable. It is again hard proof of a reasoned, data-based approach that is hard to argue with.
Furthermore, just like the Airbnb profit calculator ADR projection, occupancy prediction is shown seasonally. This gives owner and airbnb property manager alike an idea of the peaks and troughs through the year.
This is important, as for market with regulatory limits on rental nights per year, or for owner-occupied properties, decisions can be made on when to make the listing available. So, an informed, profit-based decision is made on when to seek paying guests.
12-month future forecasts with the Airbnb Profit Calculator
Of course historical market data on performance is useful for any property. Once you have an idea of past performance, you have an idea of the long term likelihoods of a given property.
However, particularly when pricing and forecasting, a look into the future is an incredibly useful thing. Whilst no one has a crystal ball, a data-based prediction from historical and current trends gives you the next best thing.
For vacation rental property managers managing a listing, this can be especially useful to estimate and forecast revenue and profit margins for owners, segments or an entire portfolio. This is of course also important for budgeting and fund management.
…And analysis of similar rentals in your neighborhood!
What is vacation rental data?
Ultimately, it’s a study of vacation rental performance that allows us to draw averages and trends across locations. The smaller your net – i.e. looking at a market, street or postcode, the more representative the data will be for a given property. And so, pulling a list of closest neighbors matching your queried property in type, size, amenities and of course location will give you an ideal picture of what that property should achieve.
As discussed the performance data and trends include revenue, pricing, occupancy and forecasting, but you are also able to see the neighboring listings in the scope.
This visibility gives unparalleled insight into the style, features amenities and listing content for those properties in direct competition with yours. Knowledge like this can only give you a big advantage over those competitors in positioning your listing optimally.
Try the Airbnb profit calculator today to optimize your investment, prospecting, owner pitching and communications, benchmarking and forecasting.
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