Calculate vacation home rental income potential. See gross revenue, expenses, and net profit for your vacation property. Free calculator.
Vacation homes are one of the most appealing real estate investments — personal enjoyment plus income potential. But the math does not always work. High mortgage payments, property management fees, seasonal occupancy, and maintenance costs can make vacation rentals cash-flow negative. Our calculator shows whether your dream vacation property actually pencils out.
Annual gross revenue ranges for 2-3 bedroom vacation rentals in popular US markets 2026: Smoky Mountains Tennessee: $45,000-$85,000/year. Outer Banks NC: $55,000-$100,000/year. Florida Gulf Coast: $50,000-$90,000/year. Lake Tahoe CA: $70,000-$130,000/year. Sedona Arizona: $60,000-$110,000/year. Hawaii Maui: $80,000-$180,000/year. Data from AirDNA market research.
True annual expense breakdown: Property management: 20-30% of gross revenue if using a manager. Platform fees (Airbnb/VRBO): 3-8% of bookings. Mortgage principal and interest: largest fixed cost. Property taxes: varies by location. Short-term rental insurance: $2,000-$5,000/year. Utilities during guest stays: $200-400/month average. Cleaning between guests: $150-300 per turnover. Supplies and amenities: $1,500-3,000/year. Repairs and maintenance: 1-2% of property value per year.
Simple calculation: Gross annual revenue (nightly rate × occupancy days) minus all operating expenses minus mortgage payment = net cash flow. For investment analysis also calculate: cap rate (NOI / purchase price), cash-on-cash return (annual cash flow / down payment), and gross rent multiplier (purchase price / annual gross rent). Positive cash flow after mortgage is the minimum threshold.
National average Airbnb/VRBO occupancy for vacation rentals: 55-65% annually. Top performing markets: 70-80% occupancy. Seasonal destinations (beach, ski) have high peak season and very low off-season: average 45-55% annually. Year-round destinations like Florida warm climate areas maintain more consistent 60-70% occupancy.
Requirements vary by location: Most cities and counties require a short-term rental permit. Florida requires DBPR vacation rental license for properties rented more than 3 times per year for periods under 30 days. Many beach communities restrict or cap STR licenses. HOAs often prohibit short-term rentals. Always check local regulations before purchasing specifically for STR income — regulations change rapidly.
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The Vacation Home Rental Income Calculator — Is Your Vacation Home Profitable? uses the same formulas, rates, and reference data that financial planners, professionals, and government sources publish. Results are estimates intended for planning and education — for situations involving large sums or legal consequences, confirm with a qualified professional before acting.
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