VRBO Rental Profit Calculator
Projected Performance
Annual Gross Revenue:
Annual Net Profit:
Monthly Average Profit:
Estimated Annual Fees:
How to Use the VRBO Calculator for Maximum ROI
Starting a vacation rental business is an exciting venture, but understanding your numbers is the difference between a profitable investment and a financial burden. Our Vrbo Calculator is designed specifically for short-term rental hosts to estimate their bottom line after accounting for platform fees, occupancy trends, and operational overhead.
Key Metrics Explained
To get the most accurate results from the Vrbo profit estimator, you need to understand the variables involved:
- Nightly Rate: This is the base price you charge per night. Remember that this fluctuates based on seasonality, local events, and weekends.
- Occupancy Rate: The percentage of the year your property is booked. A typical successful vacation rental sees between 50% and 75% occupancy.
- Average Stay Duration: Vrbo guests often book longer stays (3-7 nights) compared to other platforms. This impacts how many cleaning fees you collect and pay out.
- Vrbo Commission Fee: Most hosts on the "pay-per-booking" model pay a 5% commission plus a 3% credit card processing fee, totaling 8%. Some high-volume hosts opt for the $499 annual subscription.
Calculating Your Net Profit
The formula for calculating your Vrbo income isn't just (Price x Days). You must factor in the "Pass-Through" costs. For example, if you charge a $150 cleaning fee, that shows up in your gross revenue, but it is typically an expense you pay immediately to your cleaning crew. Our calculator treats the cleaning fee as a wash—revenue in, expense out—to give you a realistic view of your actual profit.
3 Tips to Increase Your Vrbo Earnings
- Optimize for Length of Stay: Because Vrbo charges fees on the total booking amount including cleaning fees, longer stays are often more profitable because they reduce the "wear and tear" and administrative effort per dollar earned.
- Dynamic Pricing: Use the results from this calculator to set a "floor price." Ensure your nightly rate never dips below what is required to cover your monthly fixed costs (mortgage, taxes, and insurance).
- Analyze the Competition: Check local listings to see if your cleaning fee is competitive. If it's too high, your occupancy rate may drop; if it's too low, you may lose money on short stays.
Realistic Example
If you have a beach house with a $300 nightly rate and a 60% occupancy rate, your gross rental income would be approximately $65,700. However, after paying an 8% Vrbo fee ($5,256) and estimated monthly costs of $2,500 ($30,000/year), your net profit would be roughly $30,444 per year. This tool helps you visualize these numbers instantly.