Monthly Revenue = (Base Rate × Weekday Nights × Weekday Occupancy) + (Weekend Rate × Weekend Nights × Weekend Occupancy)

• Base rate: RM140

• Weekend rate: RM180

• Weekday nights: 22 nights

• Weekend nights: 8 nights

• Weekday occupancy: 45%

• Weekend occupancy: 80%

• Weekday revenue: RM140 × 22 × 0.45 = RM1,386

• Weekend revenue: RM180 × 8 × 0.80 = RM1,152

• Total monthly revenue: RM2,538

Step 3: Monthly Operating Expenses

• Airbnb: 3% of revenue (host side)

• Booking.com: 15% commission + 3% host fee

• Average: 8-12% of revenue

• iHousing (Parkland): RM200-300/month flat

• iHousing (other condos): Custom pricing

• Industry typical: 15-25% of revenue

Step 4: Net Income Calculation

• Monthly revenue: RM3,500 (well-managed)

• Monthly expenses:

- Fixed: RM350

- Variable: RM450

- Platform fees (10%): RM350

- Management (iHousing): RM250

- Total: RM1,400

• Monthly net: RM2,100

• Annual net: RM25,200

Step 5: ROI Calculation

Annual Net Income / Total Cash Invested × 100 = Cash-on-Cash ROI %

• Total cash invested: RM350,000

• Annual net income: RM25,200

• ROI = RM25,200 / RM350,000 × 100 = 7.2%

Annual Revenue / Property Value × 100 = Gross Rental Yield

• Annual revenue: RM42,000

• Property value: RM350,000

• Gross yield = RM42,000 / RM350,000 × 100 = 12%

Real Investment Scenarios (Based on Actual Data)

Scenario 1: Parkland Avenue 2-Bedroom (Premium Beachfront)

• Property: RM420,000

• Furnishing: RM30,000

• Setup costs: RM2,000

• Total: RM452,000

• Average nightly rate: RM195

• Occupancy: 73%

• Monthly revenue: RM5,280

• Management: RM250 (iHousing flat fee)

• Strata/Assessment: RM220

• Utilities: RM180

• Internet: RM80

• Maintenance: RM150

• Platform fees: RM264

• Total: RM1,144

Scenario 2: Melaka Raya 2-Bedroom (City Centre)

• Property: RM320,000

• Furnishing: RM22,000

• Setup costs: RM1,500

• Total: RM343,500

• Average nightly rate: RM145

• Occupancy: 68%

• Monthly revenue: RM3,720

• Management: Custom pricing

• Strata/Assessment: RM180

• Utilities: RM140

• Internet: RM60

• Maintenance: RM120

• Platform fees: RM186

• Total: RM686

Scenario 3: Klebang 2-Bedroom (Mid-Range)

• Property: RM290,000

• Furnishing: RM20,000

• Setup costs: RM1,000

• Total: RM311,000

• Average nightly rate: RM125

• Occupancy: 62%

• Monthly revenue: RM2,950

• Management: Custom pricing

• Strata/Assessment: RM160

• Utilities: RM120

• Internet: RM50

• Maintenance: RM100

• Platform fees: RM148

• Total: RM578

Financed Investment Scenarios

70% Loan Scenario

• Revenue: RM4,500

• Operating expenses: RM900

• Mortgage: RM1,240

• Total expenses: RM2,140

ROI Comparison: Different Scenarios

Interactive Calculator Formulas

Calculate Your Potential Returns

Use these formulas with your specific numbers:

((Base Rate × 22 × Weekday Occupancy) + (Weekend Rate × 8 × Weekend Occupancy)) × 4.33

Fixed Costs + Variable Costs + (Revenue × Platform Fee %) + Management Fee

Monthly Revenue - Monthly Expenses

(Monthly Net × 12) ÷ Total Investment × 100

What Impacts Your ROI?

Positive Factors (Increase ROI):

✅ Premium Location: Beachfront or walking distance to attractions

✅ Quality Furnishing: Professional photos + resort-style decor

✅ Professional Management: quick response during business hours + dynamic pricing

✅ Multi-Platform Listing: Airbnb + Booking.com + others

✅ Excellent Reviews: 5-star ratings justify premium rates

✅ Smart Pricing: Dynamic rates based on demand

Negative Factors (Decrease ROI):

❌ Poor Location: No tourist appeal or accessibility issues

❌ Under-Furnishing: Cheap furniture shows in photos/reviews

❌ Self-Management: Lower occupancy and rates typically

❌ Single Platform: Only on Airbnb limits bookings

❌ Bad Reviews: Even a few 3-star reviews hurt significantly

❌ Fixed Pricing: Missing out on peak demand surges

The Management Impact on ROI

Here's what most calculators ignore: Professional management typically INCREASES net income despite the fee.

Self-Managed vs Professionally Managed ROI

• Occupancy: 55-65% (no quick response during business hours)

• Revenue: RM3,000/month

• Management fee: RM0

• Net: RM2,400/month

• Annual: RM28,800

• ROI: 8.2%

• Occupancy: 65-75% (quick response during business hours)

• Revenue: RM4,200/month (+40%)

• Management fee: RM250/month

• Net: RM3,050/month (+27%)

• Annual: RM36,600 (+27%)

• ROI: 10.5% (+28%)

Long-Term Appreciation Considerations

Your ROI isn't just cash flow. Property appreciation adds to total returns.

• Cash flow ROI: 10%

• Appreciation: 4%

• Total return: 14% annually

Get a Custom ROI Projection

Every property is unique. Location, unit specifics, furnishing level, and management quality all impact your actual returns.

At iHousing Melaka, we provide free, custom ROI projections based on:

• Your specific property or target property

• Real market data from similar properties

• Optimised pricing based on demand

• Professional management projections

Final Thoughts

Airbnb investment in Malaysia can deliver excellent returns—if you calculate correctly and execute professionally.

At iHousing Melaka, we base everything on real performance data, not hypothetical best-case scenarios. We're here to help you achieve maximum returns from your Airbnb investment.

• [Short Term Rental Returns Malaysia](/blog/short-term-rental-returns-malaysia)

• [Condo for Investment Melaka](/blog/condo-for-investment-melaka)

• [Self-Manage Airbnb vs Hire Company Malaysia](/blog/self-manage-airbnb-vs-hire-company-malaysia)