All tools
Free tool · 2 min

Vacation Rental ROI Calculator

Calculate the real return of an Airbnb/Vrbo property: initial investment, operating expenses, cap rate, cash-on-cash and years to recover your capital.

Examples:

Investment & financing

$
%
%

Leave 0% if paying cash

years
%

Notary, ISAI, deed (~6-8%)

$

Rental income

$
%
nights

Operating expenses

%

Airbnb ~15%, Vrbo ~10%

%

Local property manager (15-25%)

$
$/mo
%

% of property value

$/yr
$/yr
$/mo

How to interpret the results

Cash-on-Cash
Measures annual return on the money you actually paid out of pocket: down payment, closing costs and furniture. A good Mexico target: 8-12%.
Cap Rate
Net operating income divided by property value. Useful to compare different properties without including financing. Mexican Caribbean range: 5-8%.
Gross yield
Gross income divided by property price. A fast signal, but it does not include expenses. Use it as an initial filter, not a final decision.
Payback period
Years needed to recover the initial investment using annual net cash flow. If it shows ">99 years", annual cash flow is negative under those assumptions.

Need real data for your area?

At WebKoi we run feasibility analysis with current AirDNA, INEGI and local portal data. We include appreciation projections and benchmarking against other areas.

Book a custom analysis