Calculator methodology

Every figure produced by a RealtrAI calculator is arithmetic on assumptions the user supplies (or, in website illustrations, assumptions we disclose). No calculator output is sourced market data, a performance benchmark, a projection of actual property performance, an appraisal, or investment advice. This page publishes the formulas so any figure can be reproduced by hand.

VR Calculator (vacation-rental analysis)

The VR Calculator turns user-supplied assumptions into standard pro-forma metrics using these formulas:

• Gross annual revenue = average daily rate × 365 × occupancy rate, distributed across a stated monthly seasonality profile.
• Net operating income (NOI) = gross annual revenue × (1 − operating-expense ratio). The expense ratio is an input, not a market estimate.
• Cap rate = NOI ÷ purchase price.
• Annual debt service = standard fixed-rate amortization on the financed amount (purchase price × (1 − down-payment percentage)) at the stated rate and term.
• Cash invested = down payment + stated closing costs.
• Cash-on-cash return = (NOI − annual debt service) ÷ cash invested.
• Five-year IRR = the discount rate at which the net present value of this cash-flow series equals zero: the initial cash invested (negative); annual pre-tax cash flow grown at the stated growth rate; and, in year five, net sale proceeds (purchase price grown at the stated appreciation rate, minus stated selling costs and the remaining loan balance).

What the model holds fixed: a fixed-rate, fully amortizing loan; a constant occupancy and expense ratio; user-stated growth, appreciation, and selling-cost rates; and no tax treatment, depreciation, capital reserves, or refinancing. Results change exactly and only when the inputs change.

The homepage VR Calculator illustration

The VR Calculator panel on the homepage displays an illustrative Naples, FL scenario. Its stated assumptions are: $1.85M purchase price, $920 average daily rate, 71% occupancy, 6.85% thirty-year rate, 25% down, 2% closing costs, a 38% operating-expense ratio, 3% illustrative cash-flow growth and price appreciation, 6% selling costs, and a five-year hold. The displayed cap rate, cash-on-cash, and five-year IRR are computed at build time from those assumptions using the formulas above - the illustration cannot show a figure the formulas do not produce, and the monthly revenue chart uses the same disclosed seasonality profile. The scenario is illustrative: it is not sourced market data and not a projection of any actual property's performance.

ROI calculator (hours saved)

The ROI calculator multiplies only the values you enter: hours saved per month = listings per month × hours per listing × your assumed time-reduction percentage, and dollar value = hours saved × your stated hourly value. The time-reduction percentage is your scenario input - RealtrAI does not publish a measured time-savings benchmark, and the calculator does not predict or guarantee time savings, revenue, conversion, or any other business outcome.

Validation

The site's release pipeline rebuilds the homepage illustration figures from the formulas and assumptions above on every deploy, so the published numbers and the published methodology cannot drift apart. Product calculator outputs remain the user's to verify against their own facts before any client use; no output is a substitute for professional judgment, an appraisal, or qualified advice.