Short-Term Rental Calculator
Model an Airbnb or VRBO the honest way — nightly rate times real occupancy, every cleaning turnover, platform and management fees — and see if it beats a plain long-term lease.
Long-term comparison assumes 6% vacancy, 20% of rent for repairs, reserves and management, tenant-paid utilities and a cheaper landlord policy.
Why short-term rental numbers mislead
Headline revenue for a short-term rental can be double what a long-term lease brings in, but the costs scale with every booking. Each turnover means a cleaning, laundry and restock; the platform takes its cut; you pay every utility; and self-managing means answering guest messages at 11 p.m. Break-even occupancy is the number to watch: if the property needs 55% occupancy to cover its costs and the market averages 58%, one soft season puts you underwater.
Short-term rentals also carry regulatory risk that long-term rentals don’t. Price that in, and compare with the long-term cash flow calculator.
Questions investors ask
How do I estimate Airbnb income?
Annual revenue = average nightly rate × 365 × occupancy rate, plus cleaning fees charged to guests. Look at comparable listings in the same area with similar bedrooms and amenities, and use their calendars across a full year, not just peak season.
What occupancy rate should I assume?
Many markets average somewhere between 50% and 65% for full-time short-term rentals, with strong seasonal swings. Underwrite at the market median, not the best listing, and model a slow year at 10 points lower.
What expenses does a short-term rental have that a long-term rental doesn’t?
Platform fees (Airbnb’s host service fee is typically about 3% in the split-fee model), cleaning and laundry for every turnover, furnishing and restocking, all utilities and internet, higher insurance, local occupancy taxes and permits, and often a 20–30% co-host or management fee.
Are short-term rentals legal everywhere?
No. Many cities restrict or ban non-owner-occupied short-term rentals, require permits, cap nights per year or add occupancy taxes. Check local rules and HOA covenants before you buy.