How to Calculate Your Airbnb ROI: Free Spreadsheet for Melaka Property Owners

The Most Important Number for Your Investment Decision

Before buying any property for Airbnb in Melaka, you need to answer one critical question: What's my actual return on investment (ROI)?

Yet, 70% of property owners we talk to calculate ROI incorrectly. They focus on the wrong numbers, miss hidden costs, or make unrealistic assumptions about occupancy.

After managing 100+ Melaka properties since 2017, iHousing has developed a proven ROI calculation methodology. We're sharing our approach—and a free spreadsheet—to help you make informed investment decisions.

The 5 Critical ROI Mistakes to Avoid

Mistake #1: Using Gross Revenue Instead of Net Income

The mistake: Calculating ROI based on gross rental revenue.

Example wrong calculation:

• Annual revenue: RM 60,000
• Property cost: RM 400,000
• Wrong ROI: RM 60,000 ÷ RM 400,000 = 15%

The problem: This ignores all expenses. Your actual ROI is much lower.

Correct calculation:

• Annual revenue: RM 60,000
• Less expenses:
• Maintenance: RM 4,000
• Utilities: RM 3,000
• Internet: RM 1,200
• Taxes: RM 2,000
• Management: RM 3,000 (flat fee) or RM 12,000 (20% commission)
• Annual expenses: RM 13,200-22,200
• Net income: RM 40,800-46,800
• Correct ROI: RM 40,800 ÷ RM 400,000 = 10.2%

The difference: "Wrong" calculation shows 15% ROI. Reality is 10.2%. That's a 32% overestimation.

Mistake #2: Ignoring Seasonality in Occupancy Rates

The mistake: Assuming 70-80% occupancy year-round (unrealistic for Melaka).

Reality of Melaka occupancy:

Month	Typical Occupancy
January (CNY)	75-85%
February	60-70%
March	55-65%
April	60-70%
May	55-65%
June (school hols)	70-80%
July	65-75%
August	70-75%
September	55-65%
October	60-70%
November	55-65%
December	75-85%
Annual Average	65-70%

The mistake: Assuming 75% year-round = overestimating annual revenue by 10-15%.

iHousing approach: We use monthly occupancy projections, not one annual average.

Mistake #3: Forgetting Furnishing and Setup Costs

The mistake: Only counting property purchase price, ignoring setup costs.

Real setup costs for 2-bedroom condo:

Item	Cost Range
Property purchase	RM 350,000-500,000
Legal fees & stamp duty	RM 15,000-25,000
Renovation	RM 15,000-40,000
Furniture & appliances	RM 20,000-35,000
Kitchenware & linens	RM 3,000-6,000
Professional photography	RM 500-1,000
Platform listing setup	RM 500-1,000
Total investment	RM 404,000-608,000

The mistake impact: If you only count RM 400,000 purchase price but ignore RM 50,000 setup costs, your ROI calculation is 12.5% overstated.

Mistake #4: Overestimating Daily Rates

The mistake: Looking at peak weekend rates and assuming they apply year-round.

Reality of rate fluctuations:

Season	Achievable Rate	Days/Year
Peak (CNY, Dec, school hols)	RM 250-350	90 days (25%)
Shoulder (Mar-May, Oct-Nov)	RM 180-220	120 days (33%)
Low (Feb, Sep)	RM 150-180	60 days (16%)
Weighted average	RM 205-235	270 nights (75% occupancy)

The mistake: Assuming RM 280/night year-round vs realistic RM 215 average = 30% overestimation.

Mistake #5: Not Accounting for Vacancy Gaps

The mistake: Assuming 30 days of occupancy every month.

Reality: Even 75% annual occupancy means 7-8 vacant nights per month.

Monthly revenue calculation:

• WRONG: 30 days × RM 200 = RM 6,000/month
• RIGHT: 30 days × RM 200 × 75% = RM 4,500/month

The difference: RM 1,500/month or RM 18,000 annually in overestimated revenue.

The iHousing ROI Calculation Method

Step 1: Calculate Total Investment

Property Purchase Price
+ Legal Fees & Stamp Duty
+ Renovation Costs
+ Furnishing & Setup
+ Initial Inventory (supplies)
= TOTAL INVESTMENT

Step 2: Project Annual Revenue

Weighted Average Daily Rate (WADR)
× Nights Available (365 - blocked dates)
× Occupancy Rate (realistic by month)
= GROSS ANNUAL REVENUE

Step 3: Calculate Annual Expenses

Fixed Expenses:
- Maintenance & sinking fund
- Internet & TV
- Insurance
- Property taxes
- Management fees

Variable Expenses (per turnover):
- Cleaning
- Utilities
- Supplies (toilet paper, soap, etc.)
- Wear & tear reserve

= TOTAL ANNUAL EXPENSES

Step 4: Calculate Net Income and ROI

Gross Annual Revenue
- Total Annual Expenses
= NET ANNUAL INCOME

NET ANNUAL INCOME ÷ TOTAL INVESTMENT
= CASH-ON-CASH ROI (%)

Step 5: Calculate Break-Even Point

TOTAL INVESTMENT ÷ NET ANNUAL INCOME
= BREAK-EVEN (years to recover investment)

Free Download: iHousing ROI Calculator Spreadsheet

We've created a comprehensive Excel spreadsheet that implements our proven methodology:

What's Included:

• Investment calculator: Track all purchase and setup costs
• Revenue projector: Monthly occupancy and rate projections
• Expense tracker: All fixed and variable expenses
• ROI dashboard: Automatic ROI calculations
• 3-year projection: See how your investment performs over time
• Scenario comparison: Compare different properties side-by-side
• Sensitivity analysis: Test "what if" scenarios

How to Use the Spreadsheet:

Step 1: Enter property details (purchase price, location, unit type)

Step 2: Input setup costs (renovation, furnishing budget)

Step 3: Adjust revenue assumptions (we pre-fill realistic Melaka data)

Step 4: Enter expense estimates (we provide typical ranges)

Step 5: Review automatic calculations and ROI projections

ROI Benchmarks: What's Good vs Bad?

Based on our 100+ property portfolio (2017-2025 data):

ROI Range	Rating	Recommendation
Below 8%	Poor	Don't invest (better returns in fixed deposit)
8-12%	Fair	Consider only if strong appreciation potential
12-18%	Good	Solid investment worth pursuing
18-25%	Excellent	Top-tier opportunity, buy if affordable
25%+	Outstanding	Rare opportunity, act quickly

iHousing portfolio average: 16.8% annual ROI (all properties, 2017-2025)

Top performers: Jonker Walk properties = 25-35% ROI

Real ROI Examples from iHousing Properties

Example 1: The Shore 2-Bedroom (Jonker Walk)

Investment:

• Purchase: RM 450,000
• Setup: RM 30,000
• Total: RM 480,000

Performance (2024 actual):

• Gross revenue: RM 138,000
• Expenses: RM 17,500
• Net income: RM 120,500
• ROI: 25.1%

Example 2: Silverscape 1-Bedroom (Jonker Walk)

Investment:

• Purchase: RM 320,000
• Setup: RM 22,000
• Total: RM 342,000

Performance (2024 actual):

• Gross revenue: RM 96,000
• Expenses: RM 12,800
• Net income: RM 83,200
• ROI: 24.3%

Example 3: Melaka Raya 2-Bedroom (Non-UNESCO)

Investment:

• Purchase: RM 380,000
• Setup: RM 28,000
• Total: RM 408,000

Performance (2024 actual):

• Gross revenue: RM 78,000
• Expenses: RM 14,200
• Net income: RM 63,800
• ROI: 15.6%

Key finding: UNESCO zone properties deliver 60% higher ROI than non-UNESCO locations.

How to Get Your Free ROI Spreadsheet

For Parkland Avenue by the Sea:
Pre-register now and we'll include our ROI calculator customized for Parkland pricing (RM200-300/month flat fee).

For any Melaka property:
WhatsApp us at +60166996688 with:

• Property location
• Unit type (1BR, 2BR, 3BR)
• Asking price

We'll send you our ROI spreadsheet pre-filled with realistic data for your specific property type and location.

What you'll get:

• ✅ Excel spreadsheet with all formulas
• ✅ Pre-filled with Melaka market data
• ✅ Customized to your property
• ✅ 3-year projection
• ✅ Scenario analysis
• ✅ Expense breakdown

Stop guessing, start calculating: Use our proven methodology to make informed investment decisions.

WhatsApp Us Now: +60166996688

Last Updated: January 2026 | Data Source: iHousing Portfolio Performance (100+ Properties, 2017-2025)