Lisa Stepp

Free Investor Tool

Short-Term Rental Cap Rate Calculator

Estimate the property's return before financing costs. Enter the projected annual rental income and operating expenses to estimate net operating income and capitalization rate. Use property-specific figures and verify assumptions with your real estate agent, property manager, insurance agent, CPA, and other appropriate professionals.

Property inputs

Purchase & revenue

$
$

Use a documented estimate for the specific address

Variable expenses (% of gross revenue)

%
%
%
%
%

Fixed annual expenses

$
$
$
$
$
$
$
$

Next Step

Have a property in mind?

Send Lisa the listing and basic numbers so she can help identify financing concerns, cash requirements, and property issues before you make the offer.

Get a Free STR Deal ReviewRun the Full STR Cash Flow Analysis

Investor Education

How to Use the Cap Rate

  • Compare properties using the same expense assumptions.
  • Use property-specific insurance, tax, HOA, utility, and management estimates.
  • Do not treat projected gross revenue as net operating income.
  • A higher cap rate does not automatically mean a better investment.
  • Consider property condition, location, regulations, future expenses, financing, and personal investment goals.
  • Review the property and offer strategy with your real estate agent.
  • Review tax questions with a qualified CPA or tax professional.

This website provides general information about consumer and business-purpose mortgage financing. Some programs may be available only for investment or non-owner-occupied properties, while others may have personal occupancy requirements. Program availability, licensing, terms, documentation, and eligibility vary by lender, borrower, property type, occupancy, and state.

All mortgage financing is subject to credit review, income or asset verification when required, appraisal, title, insurance, lender guidelines, and final approval.

Equal Housing Opportunity

Lisa Stepp-Seritt, NMLS #680403
Mpire Financial, NMLS #2108504
Equal Housing Opportunity

Results are an illustrative projection of potential gross revenue and expenses, not guaranteed income or expected profit. Figures are estimates for educational purposes. Actual property performance and expenses vary. Loan terms and eligibility vary by lender, borrower, property and transaction.

This calculator is provided for general educational and planning purposes only. Results are estimates based entirely on the information entered. It is not an appraisal, property inspection, rental-income guarantee, investment recommendation, tax or legal advice, underwriting decision, or loan approval. Verify all figures independently and review the property with your real estate agent and other appropriate professionals.