Investor BlogsAirbnb Profit Calculator: The Ultimate Real Estate Investment Tool by Sylvia Shalhout March 21, 2018February 15, 2019 by Sylvia Shalhout March 21, 2018February 15, 2019One of the most complicated things about real estate investing is determining which investment property will achieve your goal of making money in real estate. At least, this used to be the case.Now, with modern real estate investment tools, anyone can find an investment property and succeed in real estate investing.But there are so many real estate investment tools offered these days; which one should an Airbnb real estate investor go for? Of course, the ultimate real estate investment tool is one that helps a real estate investor in every step of the way when he/she is looking for and analyzing investment properties to use as short term rentals. It should do all of this quickly and accurately as well. It can stand alone as the only tool you need or even want to use when investing in real estate. The ultimate real estate investment tool I’m describing is the Airbnb profit calculator.What Is an Airbnb Profit Calculator?An Airbnb profit calculator is a digital real estate investment tool which uses traditional and predictive real estate analytics in order to find the best investment properties across the real estate market. Using past trends in the real estate market and data on different investment properties, certain algorithms do the job of predicting future trends.For the real estate investor using an Airbnb profit calculator, searching the national real estate market takes only a few minutes, rather than months. Instead of looking through millions of MLS listings, investigating different cities and neighborhoods, and manually carrying out return on investment calculations, the Airbnb profit calculator does all of this for you. All the real estate investor has to do is to look at a certain location, check out the numbers presented for an investment property, and invest!Want to Learn More About Real Estate Analytics? Read: How Should You Use Real Estate Analytics to Your Advantage as an InvestorWhat Does an Airbnb Profit Calculator Do?Everything. As long as the real estate investor has:Basic knowledge about what the best real estate investments look like in order to make the final decisionGathered information about their own investment property financing costsAn Airbnb profit will take care of the rest. Step by step, the Airbnb profit calculator helps you make the best real estate investment decisions. Let’s take a look at how:Cities and Neighborhoods in the Real Estate MarketThe first step of real estate investing is choosing the best place to invest in real estate property. The Airbnb profit calculator basically provides all of the information to make this decision:Median House Price: The Airbnb profit calculator will find out what the median house price of all the investment properties in the area is. You can immediately see if the location is way out of your set budget or just right.Cash on Cash Return: Arguably one of the most important return on investment metrics, a short term rental calculator provides cash on cash return for a location. Cash on cash return is the Airbnb estimated revenue compared to the cash investment. It allows a real estate investor to see the return on investment in terms of how much money is made compared to how much money is invested:Cash on Cash Return= Cash Flow/Cash InvestedWhile a real estate investor may be able to perform this calculation for one investment property, it’s impossible to do it for an entire location. You might be wondering, why does cash on cash return matter for the entire real estate market you’re looking into? Don’t forget, sometimes you can find what seems to be a great investment property. However, if it’s in a location that has no success in short term rentals (represented by a bad cash on cash return), you could end up with the worst investment property.An Airbnb profit calculator is the best source for this kind of data when it comes to choosing the best place to invest in real estate. While you can always find an investment property with a great cash on cash return in the real estate market, why not focus on a location that is full of them and ensures yours will do well?Cap Rate: The capitalization rate (cap rate) is another key return on investment metric the short term rental calculator provides for a location. The cap rate lets a real estate investor know what kind of return on investment will be received by comparing the annual income to the purchase price. Again, with this knowledge, a real estate investor can choose a location with a high cap rate and ensure the success of the investment property.Related: Cap Rate vs. Cash on Cash Return: Which Metric to Use When?Airbnb Rental Income: Get an idea of Airbnb rental income with the short term rental calculator. Be able to choose an investment property that can cover your monthly mortgage payments and maybe even be a positively geared investment property.Related: The Best Ways to Increase Airbnb Rental IncomeAirbnb Occupancy Rate: You can’t make good Airbnb rental income without a high occupancy rate. Choosing a location for Airbnb rentals depends on the demand for such investment properties. Rather than trying to gather data manually in the area by visiting and talking to landlords, find the information at your fingertips with an Airbnb profit calculator.The Investment PropertyJust as the Airbnb profit calculator does for a location in the real estate market, it returns the cap rate, cash on cash return, occupancy rate, and Airbnb rental income for a specific investment property in the area. In addition, this ultimate real estate investment tool will provide:Cash Flow: Once you’ve gathered info about your investment property financing, you can get an accurate cash on cash return for your individual circumstances. This is because the short term rental calculator allows you to plug in all the expenses for the investment property and subtracts this from the Airbnb rental income. Find out if the property has a good cash on cash return and positive cash flow.Real Estate Comps: Trying to decide if the price is right? Well, you need real estate comps. Rather than doing this manually or turning to another real estate investment tool, the best Airbnb profit calculators will return real estate comps for you as well.To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.Related: The Guide to Using an Airbnb Profit CalculatorWhy Does Every Real Estate Investor Need One?By now, the answer to this question should be clear. In order to choose the best locations and the best investment properties and do it all in a matter of minutes (rather than months), a real estate investor needs an Airbnb profit calculator. There are even a few extra perks:Be confident that you are choosing the optimal rental strategy. Not every location or investment property is right for Airbnb rentals. The short term rental calculator will help you find the ideal ones.Make sure your investment property financing will help (and not hinder) your real estate investing goals. Make sure you don’t end up with a negative cash flow property because of expensive monthly mortgage payments before you even invest in real estate.Where Can You Find an Airbnb Profit Calculator?Not every Airbnb profit calculator is created equally. In fact, some may not even be able to return all of the key data mentioned above that would make them the ultimate real estate investment tools. So, where can you find the best Airbnb profit calculator? With Mashvisor, of course! Not only does Mashvisor’s short term rental calculator provide everything mentioned above, but it has a few extra benefits as well:Mashvisor’s Airbnb profit calculator is, in fact, a general investment property calculator. You don’t need two separate tools for investing in short term rentals and long term rentals. It provides data for both types of real estate investments!Not only can you review all of the data in detail, but you also have the option of reviewing the Mashmeter rating. This gives a percentage based on all of the data, letting you know how viable a location is for a real estate investment. Easily compare locations with one number.To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.Looking for the ultimate real estate investment tool? Use an Airbnb profit calculator! Looking for the ultimate Airbnb profit calculator? Mashvisor is the answer! Make all of the right decisions when it comes to real estate investing with this tool on your side. Start Your Investment Property Search! START FREE TRIAL AirbnbInvestment CalculatorInvestor ToolsOccupancy RateRental IncomeReturn on Investment 0FacebookTwitterGoogle +PinterestLinkedin Sylvia ShalhoutSylvia is the Content Marketing Manager at Mashvisor. As a real estate writer, she has been covering topics for the beginner and advanced real estate investor, helping them make smarter decisions as well as real estate agents looking to take their business to the next level. Previous Post What is Market Analysis in Real Estate Investing and How Do You Perform It? Next Post Multi Family Rentals Are a Must for Successful Real Estate Investing Related Posts How Is Investment Property Mortgage Different from Home Mortgage? Flipping Houses with No Money Can Be Done! Here’s How Here Are the Best Real Estate Investor Websites How to Find Investment Property for Sale Online The Ultimate Guide to Managing an Airbnb Remotely A Step-by-Step Guide to Out of State Real Estate Investing How Do I Sell My House Without a Realtor? 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