Short-term rental cashflow depends on occupied nights, the achieved nightly price, stay length, and all associated costs. Calculate each month separately. A strong holiday month does not establish a sustainable annual result.
This guide provides a transparent model and a manual worksheet. All example figures are fictional assumptions. They do not describe a property, a market average, or a forecast.
Download the cashflow worksheet
Download the editable Word worksheet or download the printable PDF.
The two-page worksheet contains input fields, formulas, and weak, base, and strong scenario columns. Enter the figures and calculate the results manually. The file does not contain automatic formulas.
Define nights and stays
Available nights equal calendar nights less nights that the owner blocks or the unit cannot offer. Occupancy equals occupied nights divided by available nights. Report both numbers so a reduced available period does not hide lost revenue.
For a planning model, estimated guest stays equal occupied nights divided by average stay length. This estimate can contain fractions. Use actual stays and invoices for completed periods.
| Input | Fictional monthly assumption |
|---|---|
| Calendar nights | 30 |
| Blocked nights | 0 |
| Available nights | 30 |
| Occupied nights | 18 |
| Occupancy | 60% |
| Average nightly accommodation price | RM220 |
| Average stay length | 3 nights |
| Estimated guest stays | 6 |
Count a refunded or cancelled stay according to the actual revenue and cost records. Do not count unearned charges as completed accommodation revenue.
Separate revenue and costs
Accommodation revenue equals occupied nights multiplied by the average nightly price after discounts. Add earned guest service charges separately. Deduct refunds once, either within the revenue figure or as a separate line.
Keep refundable deposits and taxes collected for an authority outside earned accommodation revenue. Record their receipts and payments separately for cash control. Check the actual tax treatment with the relevant authority or adviser.
| Model line | Formula | Example |
|---|---|---|
| Accommodation revenue | 18 nights × RM220 | RM3,960 |
| Management fee | 15% × accommodation revenue | RM594 |
| Cleaning and linen | 6 stays × RM70 | RM420 |
| Variable costs | 18 nights × RM15 | RM270 |
| Fixed operating costs | Assumed monthly total | RM650 |
| Operating surplus before finance and income tax | Revenue less the four cost lines | RM2,026 |
| Finance payment | Assumed monthly payment | RM1,500 |
| Cash after finance, before income tax and reserve | RM2,026 − RM1,500 | RM526 |
| Cash reserve allocation | Assumed monthly allocation | RM200 |
| Cash available after reserve, before income tax | RM526 − RM200 | RM326 |
This example has no guest cleaning charge, payment fee, cancellation, or additional service revenue. Add those items when they apply. The RM650 fixed cost assumption includes the example's fixed utilities and other operating costs.
The management percentage applies only to accommodation revenue in this example. Use the actual fee base from your management quotation. A fixed fee or minimum fee changes the calculation.
Calculate break-even occupancy
For this simple model, the contribution per occupied night is:
RM220 × (1 − 15%) − RM15 − (RM70 ÷ 3) = RM148.67.
The cash requirement before income tax is RM650 fixed costs plus RM1,500 finance plus RM200 reserve. The total is RM2,350.
Break-even nights = RM2,350 ÷ RM148.6667 = 15.81 nights.
Break-even occupancy = 15.81 ÷ 30 = 52.69%.
Use unrounded figures within the calculation. At least 16 occupied nights exceed the model's mathematical threshold. Actual stay counts, invoices, and calendar gaps can change that result.
If contribution per night is zero or negative, this formula gives no feasible break-even result. If required nights exceed available nights, the assumptions do not support break-even within that month. Recheck prices, costs, and the available period.
Test weak and strong months
These scenarios retain the same nightly price, stay length, fee rate, and cost assumptions. Actual seasonality can change several inputs at once.
| Occupied nights | Occupancy | Cash after finance and reserve, before income tax |
|---|---|---|
| 12 | 40% | −RM566 |
| 18 | 60% | RM326 |
| 24 | 80% | RM1,218 |
At 18 occupied nights, a two-night average stay implies nine guest stays. Cleaning then costs RM630 instead of RM420. Cash after finance and reserve falls from RM326 to RM116 under the same assumptions.
For monthly stays, replace the nightly revenue model with the agreed monthly charge. Recheck utilities, included services, guest turnover, and the contract. Do not assume that the nightly price multiplied by 30 equals achievable monthly revenue.
Keep cashflow separate from accounting profit
This model deducts the full finance payment and a cash reserve allocation. Accounting profit can treat principal, interest, depreciation, and reserve transfers differently. The worksheet does not calculate taxable income or investment returns.
Prepare an initial capital budget with the business setup worksheet. Use the house rules and deposit record to track guest money separately. For each month, compare the estimate with actual receipts and payments before you change the assumptions.