Since its launch in 2008, Airbnb has spawned an entirely new business of short-term vacation rentals. Platforms like Airbnb and Vrbo have shaken the hotel sector and established a shared economy of everyday homeowners who are now full-fledged vacation rental business owners by liberalizing the vacation sector and providing power to regular homeowners.
As for Airbnb demand, as of December 2020, Airbnb had 7.9 million active listings, a 2.6% increase from 7.7 million active listings in 2019, according to statistics.
So, there’s no doubt that becoming an Airbnb host provides a fantastic return on investment. According to investment property studies, short-term rentals create significantly higher annual revenue than typical rents. In addition, the current pandemic limits are also expected to change in the coming months, implying that an increasing number of people will travel abroad.
Before purchasing an Airbnb investment home, you should consider the prospective profits. However, don’t be concerned if you don’t have a passion for numbers or don’t know where to begin with your real estate analysis.
In this article, we’ll help you find the best Airbnb calculator for your needs so that you can have a profitable investment. We will be comparing the AirDNA, BiggerPockets, and Mashvisor Airbnb calculators.
What is an Airbnb Calculator?
An Airbnb calculator is a key to investment property analysis. It is designed to assist beginner real estate investors and experienced ones in searching for and locating top-performing vacation houses.
This innovative rental property calculator, also known as the Airbnb profit calculator, undertakes real estate market analysis as well as investment property analysis over large numbers of MLS listings, foreclosed properties, off-market houses, and even properties that you enter on your own to evaluate the profitability potential of each one of them.
It removes the need for investors to perform a complex, time-consuming comparative market analysis and search for Airbnb rental data and the assessment of return on investment. An Airbnb calculator can reduce 3-4 months of rental property analysis to 10 minutes, enabling you to purchase the most profitable investment properties before anybody else.
Now that we have that part covered let’s see how each of the three tools performs, their pros and cons, and more!
The Best Airbnb Calculator in 2022: Complete Breakdown
The Airbnb rental calculator’s most significant feature is that it can do genuinely many helpful things needed for a real estate investor. The final result will be the ability to buy Airbnb property with a good return on investment swiftly and reliably.
The accessibility of vacation rental has significantly increased the number of people putting their homes on the market for this low-risk investment. But, as with any investment, people want to do their study before getting in, and three tool names for this spring to mind. Thus, we have the complete review to determine the best Airbnb calculator out of the following: Mashvisor, AirDNA, and BiggerPockets.
BiggerPockets Airbnb Calculator: Full Review
BiggerPockets is a website for real estate investors in the United States. Aside from providing material and resources, they are well-known for their community of over 2 million individuals who interact to offer advice, important recommendations, and collaboration.
Rather than reviewing the entire platform, we will concentrate on the BiggerPockets Airbnb calculator. You must first sign up for a platform profile to use this tool. Signing up is simple: enter your name and email address, then create a password.
Investors can choose from a range of deal-evaluation calculators, including specialist estimators for rental properties, fix and flips, BRRRR, wholesaling, mortgage payments, rehab, the 70% rule, and Airbnb.
BiggerPockets made sure that the Airbnb calculator is a helpful tool for calculating how much money you may make as an Airbnb host by predicting your rent and providing you with all of the information you need on how to become an Airbnb host.
Vendors and more committed investors that pay $99 monthly (with a 12-month commitment) receive a Premium Membership, which includes analytic tools to understand and fine-tune profile interaction and software to produce warm leads.
You can use BiggerPockets’ Airbnb calculator to determine how much money you could make from short-term Airbnb rentals. Furthermore, since Rentalizer from AirDNA powers it, it gives you annual income, average daily rate, occupancy rate, and other data for every property globally. Simply type the address in the “Enter a Street Address” field to get your brief report.
With BiggerPockets rental analysis, investors can access leasing agreements and an Airbnb calculator; nevertheless, membership can be pretty costly, and statistics from the calculator might be inaccurate from time to time.
BiggerPockets’ Airbnb calculator may appear one-sided or daunting to certain investors, especially those who have yet to experience success. They may be seeking support or validation from others who have gone through similar difficulties in the real estate market.
So, is BiggerPockets’ calculator the best Airbnb calculator for 2022? The answer is, unfortunately, no. The most challenging aspect of this Airbnb calculator is that you must comprehend, search for, and enter all data yourself. With that said, here are some pros and cons of BiggerPockets.
- Lots of free resources
- Networking opportunities
- Educational materials
- Good software tools
- Not-so-precise Airbnb calculator
- Having to do everything manually
- Challenging for beginner investors
AirDNA Calculator: Full Review
AirDNA, a major provider of vacation rental data, offers a variety of tools to assist its users in locating profitable investment homes. It provides competitive analytics, specialized reporting, and interactive dashboards for more than 10 million rentals in 120,000 markets worldwide. It allows vacation rental investors to understand and analyze significant trends in the short-term rental business by leveraging past and forecasted data to maximize revenue possibilities.
The AirDNA calculator (AirDNA Rentalizer) is an analytics tool that predicts the possible Airbnb revenue if you convert a house into a vacation rental. You must, however, specify an address. AirDNA’s platform does not allow you to search for properties. So you must already know what property to look into, or you can seek one on a different platform.
To begin, enter a street address and the number of bedrooms, bathrooms, and visitor capacity into the Rentalizer. It then compiles a list of neighboring properties and generates a relevance-based index. Its final estimates also consider market-wide parameters such as seasonality, rental demands, and revenue growth.
AirDNA’s data is derived from public listings on Airbnb, VRBO, and HomeAway. However, because their data has not been correctly and individually checked, it is difficult to verify whether the information presented is genuinely correct. The best Airbnb calculator MUST look at the medians (like Mashvisor). The median value eliminates anomalies, which could distort and misinform the study, making it more accurate and reliable. However, the AirDNA’s software focuses its data on the local market’s average occupancy and earnings.
Since the AirDNA Rentalizer considers the given methods, you should not trust the calculations immediately without further investigation. Otherwise, you risk losing a substantial amount of prospective money addition. In addition, many AirDNA hosts believe that the platform’s revenue estimates are overly optimistic because they do not account for taxes and other associated expenditures.
Several hosts advise using hacking techniques to obtain a more accurate analysis. In reality, this may be acceptable, but it may raise some questions because you would expect the platform to offer an accurate report if you were paying for it.
AirDNA, on the other hand, has just included a financial calculator that allows you to enter your significant expenses. So far, there have been no new user comments on this update.
When you use the AirDNA Rentalizer, you will see the metrics listed below:
- Annual revenue
- Average daily rate
- Occupancy rate
- 12-month demand forecast
- Comparable property analysis
Now, is AirDNA’s calculator the best Airbnb calculator so far? Not really. The given ranking data displayed in the analysis is solely based on what AirDNA has seen in the particular local market, which is not the greatest approach.
- Depth of data
- Many useful software tools
- The data can be inaccurate
- You can’t search for properties
Mashvisor Airbnb Calculator: Full Review
Mashvisor is a data analysis software that helps real estate investors find homes with substantial long-term equity and short-term rental returns. It contains various tools for various purposes. Mashvisor tools scrape through vast volumes of data with the help of many data input streams to provide you with a more clear picture, which is nicely presented in its dashboard.
Unlike AirDNA, Mashvisor’s Property Finder allows you to search for Airbnb houses for sale in any US region. Select the listing to view the property’s features when you discover one you like. In addition, the Mashvisor Airbnb profit calculator can be found on the same website.
This tool assists you in determining the earning potential of investment homes for sale if they are rented out on Airbnb. Among the metrics provided are:
- Airbnb income
- Expenses related to operating an Airbnb
- Airbnb cash flow
- Airbnb cash on cash return
- Airbnb cap rate
- Airbnb 10-year payback balance
The data displayed by default is based on the median pricing received from the Airbnb site and national average costs. However, you can change the following numbers on the calculator to get a more exact estimate:
- Airbnb rental income
- Occupancy rate
- Switch between cash payment and mortgage payment
- Mortgage specifics (property selling price, down payment, mortgage type, loan term, and interest rate)
- Initial one-time expenditures (the charge for inspection, repairs, furnishing, and closing costs)
- Monthly operating costs (insurance, utilities, property management and upkeep, property and rental income taxes, HOA dues, and cleaning fees)
With the best Airbnb calculator, you can also include your own unique expenses. The calculator will utilize your information to calculate your cash flow, cash on cash return, and cap rate. You can also find a 10-year investment payback table if you scroll down the page. Based on the data you entered, this calculates your expected accumulated income (or loss).
If you discover that the house is not suitable for Airbnb, Mashvisor’s real estate market analysis can assist you in determining whether it is suitable as a typical rental home alternatively. If you want to discover which regions have high-income potential, the platform also offers a complete neighborhood study.
Mashvisor is an ideal investment property research platform for first-time investors seeking an area to launch an Airbnb. These qualities would also be beneficial to experienced investors looking to diversify their portfolios!
Mashvisor and AirDNA get the majority of their short-term rental data directly from Airbnb, whereas AirDNA Rentalizer also obtains information from VRBO and HomeAway. That implies that the studies you see on both platforms are based on the success of real Airbnb short-term rental properties rather than assumptions and estimates.
What is even better with the best Airbnb calculator, Mashvisor calculator looks at the medians rather than the means. As a result, the median value excludes abnormalities, which could mislead and misguide the study, making it more accurate and reliable.
It also only gathers data from confirmed Airbnb properties with three or more ratings on the marketplace. This implies that we only use data from Airbnbs that have been rented out on the market for an extended period of time. Our algorithm excludes properties and Airbnb hosts that are fresh to the service and are still giving it a shot because they may leave if events do not go smoothly.
When you click on a property listing on the Mashvisor platform or enter the address of an off-market property, our Airbnb calculator will appear on the property page. The following information is displayed by this tool:
The property page, like other real estate websites, will provide the following information:
- Street address
- Number of bedrooms
- Number of bathrooms
- Selling price
- Property type
- Lot size
- Year built
- Number of days on the market
- Contact information for the listing agent
- Tax history
These are usually the first things you check for when looking for an investment property. Once you’ve found a home with the essential qualities you’re looking for, you may move on to the next portion of the property page, which is all about Airbnb investment stats, such as:
- Airbnb rental income
- Airbnb occupancy rate
- Airbnb prices
- Airbnb cash flow
- Airbnb cash on cash return
- Airbnb cap rate
- 10-year investment payback balance
- Airbnb rental comps
As we are near the end of this article, is Mashvisor’s calculator the best Airbnb calculator for 2022? Biased opinions aside, among the three calculators listed, it is! With all the precise data it gathers, multiple options, and tools, you can relax and easily start making money in real estate!
The Mashvisor platform enables you to make faster and more informed real estate investing decisions. It combines the time-consuming procedure of completing real estate market analysis and investment property analysis with spreadsheets with a collection of highly engaging real estate investing tools.
Now let’s see some pros and cons of the 2022 best Airbnb calculator by what the users have said.
- Affordable for all real estate investors
- Free trial
- Precise data
- Wide range of sources for analytics
- Structured membership packages
- User-friendly and more
- Covers only the US market
What Is the Best Airbnb Calculator for 2022?
After a long and in-depth review of the three platforms, Mashvisor takes the lead. Unfortunately, even though the BiggerPockets calculator and AirDNA calculator have great options and features, their tool just isn’t optimized to the Mashvisor’s extent. So at the end of the day, it is your decision on which tool you’ll use.
Now that we know that the best Airbnb calculator is the Mashvisor calculator, it is worth giving it a try! Based on comparable Airbnb rental properties in the area, it calculates the home’s rental revenue, costs, and occupancy rate. However, you can change these numbers to suit your needs.
After entering the necessary data, the calculator will provide your expected cash flow, cash on cash returns, cap rate, and 10-year payback balance. You can test it out for yourself, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.