Business & Investment

Accommodation ROI Calculator Australia 2026

Model the return on investment for an Airbnb, boutique hotel or motel. See ROI, payback, break-even occupancy and how it compares to a long-term rental.

Property

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Financing

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Revenue

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Variable costs

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Fixed costs (monthly)

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Tax & long-term rental compare

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Victoria charges 7.5% on short-stay room revenue (from 1 Jan 2025). Other states currently 0%.

Fill in the property, financing and revenue details

Then hit Calculate to see ROI, payback period, break-even occupancy and how it compares to long-term rental.

How It Works

This calculator models a typical short-stay accommodation business in Australia and surfaces the metrics property investors actually use to make go/no-go decisions.

Revenue is driven by three things: how many rooms you have, what you charge per night (ADR) and how often you fill them (occupancy). Cleaning fees charged to guests pass through as additional revenue.

Costs split into variable (cleaning, linen, booking platform commission, card processing, short-stay levy) and fixed (mortgage, insurance, utilities, rates, wages, marketing, maintenance reserve). Property management is treated as a percentage of room and cleaning revenue, matching the industry standard.

Break-even occupancy is the killer metric — the percentage you need to fill to cover every cost. If it is below your realistic average occupancy, the deal works. If it is above, you are gambling on peak seasons.

Comparison to long-term rental shows whether the extra revenue from short-stay covers the extra hassle and turnover risk versus leasing the property to a single long-term tenant.

If your property is subject to a short-stay or tourism levy, enter the percentage in the Short-stay levy field — Victoria currently charges 7.5% on room revenue (from 1 January 2025); other states have no state-level levy yet.

Frequently Asked Questions

What occupancy rate should I use?

Sydney CBD and major tourist hubs typically run 65-75% annual average; coastal/regional 50-65%; remote 35-50%. Check AirDNA or your local STR data for the exact suburb. Conservative buyers should model 5-10% below their target.

How is RevPAR calculated?

Revenue Per Available Room = total room revenue ÷ total available room nights. It captures both occupancy and rate in one number, letting you compare properties of different sizes.

Does this include GST?

No, the calculator assumes net figures. Accommodation in Australia is GST-taxable if your turnover exceeds $75,000/year — model your ADR and costs as GST-inclusive or exclusive consistently. Most STR investors quote ADR inclusive of GST.

What is the Victorian Short Stay Levy?

A 7.5% state levy on room revenue from short-stay rentals (under 28 days), effective 1 January 2025. Hotels and motels are exempt. If your property is subject to it, enter 7.5 in the Short-stay levy field on the form.

Is this calculator suitable for hotels?

Yes — switch the property type to Boutique Hotel or Motel and the defaults adjust: management fee drops to 0% (in-house operations), platform commission rises to 16-18% (OTA reliance), and wages default to a sensible monthly figure. Adjust to match your operation.

Last updated: June 2026