Vacation Rental Cap Rate Calculator: Calculate STR Returns Fast
Enter your property's net operating income and total acquisition cost to calculate your cap rate in seconds.
Total annual rental revenue minus all operating expenses — platform fees, cleaning costs, management fees, insurance, maintenance, and utilities. Exclude mortgage payments.
Full purchase price plus closing costs, immediate renovation spend, and furnishing costs before the first guest checked in. Omitting these will overstate your cap rate by 8–15%.
Your annual net operating income as a percentage of total acquisition cost. A result between 6% and 10% is considered viable in most mid-tier STR markets as of 2026.
How the Calculator Helps You
Instant Return Comparison
Compare cap rates across multiple properties in seconds, so you stop guessing which deal actually performs.
NOI Sanity Check
Entering your real net operating income forces you to account for platform fees, cleaning costs, and vacancy before committing to a purchase.
Acquisition Cost Clarity
Including the full acquisition cost (purchase price plus closing costs) gives you a cap rate grounded in what you actually paid, not the listing price.
How the Calculator Works
Enter two numbers and you get your cap rate instantly. No spreadsheet, no manual formula. The calculator runs the standard cap rate equation: NOI divided by total acquisition cost, expressed as a percentage.
Annual Net Operating Income (NOI)
Total rental revenue minus all operating expenses, platform commissions, cleaning costs, management fees, insurance, maintenance, and local taxes — excluding mortgage payments.
NOI captures what the property actually earns after it's running, not just what it collects. It is the single most important number in the cap rate calculation.
Total Acquisition Cost
Full purchase price plus closing costs, any immediate renovation spend, and furnishing costs required to make the property guest-ready.
Hosts who enter only the purchase price consistently overstate their cap rate by 8–15%, which skews every buy-or-hold decision that follows.
Run Your First Calculation Today
Enter your numbers. Get your cap rate in seconds. Mr. Props gives you the tools to make faster, smarter acquisition decisions without a spreadsheet.
No credit card required. Cancel anytime.
Frequently Asked Questions
What Counts as Annual Net Operating Income for an Str?+
Annual Net Operating Income (NOI) is your total rental revenue minus all operating expenses, cleaning fees collected, platform commissions paid out, property management fees, maintenance, supplies, insurance, and utilities. It does not include mortgage payments, depreciation, or income taxes.
Does Total Acquisition Cost Include Renovation Expenses?+
Yes. Total Acquisition Cost covers the purchase price plus closing costs, any furnishing budget, and renovation work needed before the first guest checks in. Leaving out a $15,000 furniture fit-out will inflate your cap rate by a meaningful margin on a $300,000 property.
What Cap Rate Should an STR Hit to Be Worth Buying?+
Most experienced STR operators target a cap rate between 8% and 12% for short-term rentals, compared to 5%–7% for long-term rentals. Markets with strict local housing regulations often compress returns to the lower end of that range.
Can Cap Rate Alone Tell You Whether a Deal is Good?+
No. Cap rate ignores financing costs, seasonal revenue swings, and platform risk. Use it as a quick filter, then run a full cash-on-cash analysis before committing.
How Often Should You Recalculate Cap Rate on an Existing Property?+
Recalculate at least once a year, or any time your operating costs shift by more than 10%. Rising insurance premiums and new platform fees in 2025–2026 have quietly eroded NOI for hosts who haven't re-run the numbers.