Calculator · Short-term rental

Short-term rental calculator

Enter a nightly rate and occupancy for each month, plus your costs and loan. See yearly revenue, NOI, cash flow and the occupancy you need to break even. Results update as you type.

Purchase

Purchase price

Buying closing costsPercent of price.

Furnishing and setup cost

Upfront repairs and updates

Loan

Down paymentPercent of price. Loans for short-term rentals often need more down than a primary home.

Interest ratePer year.

Loan term (years)

Loan points and feesPercent of loan.

Guests

Average stay length (nights)

Cleaning fee charged to guestPer stay.

Cleaning cost you payPer stay.

Operating expenses

Platform feePercent of gross revenue.

Property managementPercent of gross revenue.

Utilities and internet per month

Supplies per month

Insurance per year

Property taxes per year

HOA per month

Repairs reservePercent of gross revenue.

Capex reservePercent of gross revenue.

Nightly rate by month

Nightly rate, January

Nightly rate, February

Nightly rate, March

Nightly rate, April

Nightly rate, May

Nightly rate, June

Nightly rate, July

Nightly rate, August

Nightly rate, September

Nightly rate, October

Nightly rate, November

Nightly rate, December

Occupancy by month

Occupancy, January

Occupancy, February

Occupancy, March

Occupancy, April

Occupancy, May

Occupancy, June

Occupancy, July

Occupancy, August

Occupancy, September

Occupancy, October

Occupancy, November

Occupancy, December

Results (year 1)

Updates as you type. The formulas are under "How this is calculated" below.

Annual gross revenue
NOI
Annual cash flow
Cash-on-cash
DSCR
Break-even occupancy
Loses money even fully booked

Revenue

Booked nights per year
Stays per year
Average occupancy
Average nightly rate (booked nights)
Room revenue
Cleaning fees collected
Best month gross revenue
Worst month gross revenue

Expenses and returns

Platform fee
Cleaning cost
Management
Utilities, supplies, insurance, taxes, HOA
Repairs and capex reserves
Total operating expenses
Cap rate
Annual debt service
Monthly cash flow (average)
Occupancy above break-even

Financing

Loan amount
Monthly loan payment
Cash invested

How to use this calculator

Enter the price, closing costs, furnishing and upfront repairs. Furnishing is a real cost for most short-term rentals.
Enter the loan: down payment, rate, term and points. Ask a lender, because loans for short-term rentals can differ from those for a primary home.
Enter the average stay, and the cleaning fee guests pay against the cleaning cost you pay.
Fill in the nightly rate and occupancy for each month. Use comparable listings nearby and be cautious with the busy months.
Enter platform, management, utilities, supplies, insurance, taxes and reserves.
Check break-even occupancy. If it is close to your expected occupancy, the deal has little cushion.

Worked example

The page opens on a $380,000 property with $28,000 of furnishing, $5,000 of repairs and a loan of 75% of the price at 7% over 30 years. Nightly rates run from $190 in January to $305 in July, and occupancy from 50% to 85%. The average stay is 3.5 nights.

Cash invested: $138,450. Loan: $285,000, with a payment of $1,896.11 per month.
Booked nights: about 242 per year (66.2% average occupancy) over about 69 stays, at an average rate of $242.
Gross revenue: $65,267 (room $58,366 plus cleaning fees $6,900). Best month $8,790, worst month $3,388.
Operating expenses: $36,647. NOI: $28,619, a cap rate of 7.53%.
Debt service: $22,753. Annual cash flow: $5,866 ($489 per month), cash-on-cash 4.24%, DSCR 1.26x.
Break-even occupancy: 56.9%, so there are 9.3 percentage points of occupancy to spare.

How this is calculated

For each month: booked nights = days in month x occupancy (a 365-day year, February = 28). Room revenue = booked nights x nightly rate.
Stays = booked nights / average stay. Cleaning fees = stays x cleaning fee. Gross revenue = room revenue + cleaning fees.
Costs that rise with bookings: platform fee % and management % of gross revenue, stays x cleaning cost, and repairs % and capex % reserves of gross revenue.
Fixed costs: (utilities + supplies + HOA) x 12 + insurance + taxes.
NOI = gross revenue - all operating expenses. Cap rate = NOI / price.
Loan = price x (1 - down %). Payment uses the standard amortizing formula P x r / (1 - (1 + r)^-n). Cash flow = NOI - payment x 12.
Cash invested = down payment + closing + points + furnishing + repairs. Cash-on-cash = cash flow / cash invested. DSCR = NOI / debt service.
Break-even occupancy = (fixed costs + debt service) / (what bookings contribute at 100% occupancy). The cushion is your average occupancy minus that number.

Year one only, before income tax. Local rules, permits, licenses and taxes on short-term rentals vary and are not modeled here.

Frequently asked questions

Is a short-term rental more profitable than a long-term rental?

Sometimes it earns more revenue, but it also has more costs and more work: cleaning, supplies, platform fees, furnishing and vacancy swings. Compare the two on the same property using realistic occupancy.

What occupancy should I assume for an Airbnb?

It depends heavily on the market, season, price and quality of the listing. Use comparable listings nearby, and test a lower number than the optimistic case to see how much cushion you have.

Are short-term rentals legal everywhere?

No. Many cities and HOAs limit or ban short-term rentals, or require permits or taxes. Check local rules and your HOA documents before you buy.

What costs do new hosts forget?

Furnishing, cleaning between stays, supplies, platform fees, higher utilities and internet, and local lodging taxes. Management fees and reserves for repairs and replacements also matter.

What is break-even occupancy?

It is the share of nights you need booked to cover all costs and the loan payment, so cash flow is zero. The further your expected occupancy is above it, the more cushion you have.