How to calculate the real return on a Laurentides Airbnb chalet
Short answer — Airbnb profitability in Sainte-Adèle on a $600,000 chalet: ~$75,920 gross revenue, ~19% cash-on-cash at 65% occupancy and $320 ADR — break-even at 47% occupancy.
Full method: AirDNA gross revenue, Airbnb 18% deductions, taxes, operating costs, amortization. Worked example on a $600k Sainte-Adèle chalet.
Airbnb chalet profitability is measured across four metrics: gross revenue, net revenue after platform fees, cash-on-cash after mortgage, and break-even occupancy. Below the method applied to a $600,000 all-in Heritage chalet in Sainte-Adèle.
Step 1 — Gross annual revenue
Per AirDNA and partner data on 24 comparable chalets, a well-equipped 3-bedroom in Sainte-Adèle posts: ADR $320/night, occupancy 65%, so $320 × 365 × 65% = $75,920 gross lodging revenue.
Step 2 — Platform + tax deductions
- Airbnb host fee (3%): -$2,278
- Airbnb guest service fee (14.2%): excluded from the figure above
- Québec lodging tax (3.5%, collected by Airbnb): neutral
- GST/QST collected and remitted: neutral
Net platform revenue: $73,642.
Step 3 — Operating costs
- Cleanings (24 stays × $180): $4,320
- Electricity + heating: $4,800
- Internet + TV: $1,800
- Maintenance and repairs: $4,000
- Municipal + school taxes: $3,800
- Short-term-rental insurance: $2,400
- Concierge / self-managed: $0 (vs ~20% of gross if managed)
Total operating costs: $21,120. Net operating income: $52,522.
Step 4 — Real cash-on-cash
With 20% down ($120,000) and a $480,000 mortgage at 5.4% over 25 years ($29,760/yr debt service), post-debt cash flow = $52,522 - $29,760 = $22,762. Cash-on-cash $22,762 / $120,000 = 19.0%. Add the chalet's appreciation (Laurentides historical 4–6%/yr) and principal pay-down (~$8,500 year-1).
When does the investment turn negative?
Break-even occupancy (cash flow zero) sits at 47% at $320 ADR — 24% below the observed Sainte-Adèle median occupancy. Comfortable margin of safety.
Frequently asked questions
How much does an Airbnb chalet in Sainte-Adèle earn per year?
On a well-equipped 3-bedroom chalet ($320 ADR, 65% occupancy), annual gross revenue is about $75,920 — $320 × 365 × 65%. After platform fees (~3%) and operations (~$21,120), net operating income is about $52,522.
What is the cash-on-cash return on a Laurentides Airbnb chalet?
On a $600,000 all-in project with 20% down ($120,000) and a $480,000 mortgage at 5.4% over 25 years, post-debt cash flow is about $22,762 — a 19.0% cash-on-cash return.
What occupancy rate is needed to break even?
At $320 ADR, break-even (zero cash flow after mortgage and operations) is about 47% occupancy — 18 points below the observed Sainte-Adèle median (65%).
How do you calculate Airbnb profitability in the Laurentides?
In four steps: (1) gross revenue = ADR × 365 × occupancy; (2) platform deductions; (3) operating costs (cleaning, utilities, taxes, insurance, maintenance); (4) mortgage debt service. Cash-on-cash = post-debt cash flow ÷ down payment.
Which operating costs should you include?
Cleanings, electricity/heating, internet, maintenance, municipal and school taxes, STR insurance, and optionally property management (18–25% of gross if outsourced). CCA depreciation reduces tax but is recaptured on sale.