Gross yield
Annual rental income before expenses, divided by the property price. It is a quick comparison metric, not a profit figure.
Short-term let calculator
Start with the numbers. Continue with the context.
Estimate purchase costs, monthly cash flow and returns for a property let on Airbnb or a similar platform. Adjust the assumptions and every figure updates instantly. All amounts in South African rand.
Your assumptions
Model the purchase, the income and the running costs.
Every input below feeds the results panel in real time. Change a slider and the cash flow, yields and break-even occupancy move with it.
Results
Indicative figures based on the assumptions you have entered.
Gross monthly revenue
R28 272
18 nights, ~6 stays/month
Operating costs / month
R14 886
Excl. bond
Net operating income
R13 386
Before financing
Monthly cash flow
−R9 457
After bond repayment
Gross yield
13.6%
Annual revenue / price
Net yield (cap rate)
5.7%
Annual NOI / total cost
Cash-on-cash return
-20.4%
Annual cash flow / cash in
Break-even occupancy
89%
Cash flow = zero
Estimates only. Excludes income tax, capital growth and vacancy risk between seasons. Confirm body corporate rules permit short-term letting before purchasing a sectional title unit.
What these terms mean
Understand the numbers before relying on them.
Return figures are only useful when you know what is included, what is excluded and what could change them.
Net yield
Rental income after operating costs, divided by the property price. It is closer to the real cash return but still excludes financing and tax.
Cash flow
The money left each month after bond repayments and operating costs. Positive cash flow reduces the cost of holding the property.
Occupancy
The percentage of available nights or months the property is rented. A small change in occupancy can have a large impact on income.
Capital growth
The change in the property’s market value over time. It is not guaranteed and can vary sharply between estates and market cycles.
Why owner use changes the model
Using the property yourself reduces rental nights and changes expenses, cleaning schedules and guest expectations. The model must reflect that.
Important - this is not advice
This estimator is intended for general illustrative use only. It does not constitute financial, investment, tax or legal advice and will not predict actual income or property performance. Assumptions, finance terms, costs, occupancy and market conditions vary. Finance approval remains subject to lender criteria.
Talk it through
A spreadsheet cannot understand your full situation.
Talk through your budget, intended use and the assumptions that matter.