Calculating profit

[Mel3]

I am trying hard to set up an Excel spreadsheet that will provide me useful data on what my profit margin is.

Any tips? Im really keen to hear how people calculate profit including their own hrs spent liaising/cleaning/promo-ing/etc.

Can't wait to hear back!

[Allison2]

I set aside 30% for Income taxes, 6% State use tax, 3% Airbnb fee, $25/cleaning if I do it, or total charge if hiring outside help for it (usually more), along with consumables I buy for the place (TP, snacks, detergents, toiletries, cleaning supplies etc).

I don't look at it on a per-stay basis, but monthly (too hard to split those consumables up by stay). Once the deductions are taken out, I divide what's left by the estimated hours I spent on admin, laundry, greeting guests, etc. to get what is essentially my hourly rate. I've been happy with it, so I keep going!

[Mel3]

Thanks Allison.  I think you are onto something there with the per month breakup.  We have been trying to work out whether it is worth all the work that it takes in order to Airbnb our grannyflat, or should we just rent it out to someone unfurnished.  We need to do it for a year to know that answer I think