How do you calculate Airbnb profitability in the Dominican Republic?
By Host My Spot · Updated
Short answer
Short-term rental profitability rests on three metrics: occupancy (booked nights divided by available nights), ADR (accommodation revenue divided by booked nights) and RevPAR (revenue divided by available nights). From gross revenue you subtract platform fees, management commission, cleaning, utilities, maintenance and amortised furnishing. What remains is owner net income — the only figure comparable to another investment.
The three base metrics
- Occupancy: booked nights ÷ available nights, excluding owner blocks.
- ADR: accommodation revenue ÷ booked nights, before taxes and cleaning.
- RevPAR: accommodation revenue ÷ available nights. Combines rate and occupancy.
Costs you must always subtract
- Platform fee on every booking.
- Management commission on revenue.
- Cleaning and laundry per stay.
- Electricity, water, internet, gas and HOA fees.
- Repairs, amenity restocking and furniture wear.
Why we don't publish generic projections
Two apartments in the same tower perform differently depending on floor, view, furnishing, photography and pricing policy. Any serious projection starts from the real history of that area and that unit, not a national average.
From gross revenue to owner net
| Line | What it covers | Who absorbs it |
|---|---|---|
| Gross revenue | Accommodation + cleaning fee charged to the guest | Owner |
| Platform fee | Percentage retained by Airbnb, Booking or another channel | Deducted from gross |
| Management commission | Percentage of revenue; 20-25% reference | Owner |
| Operating costs | Cleaning, utilities, supplies, repairs | Owner |
| Net income | What is deposited to the owner | Final result |
See how we measure results