Short-Term Rental Calculator
Estimate the annual cash flow of a short-term rental from the nightly rate, occupancy, fees, and fixed costs.
Want to understand the concept, not just the number? Read The Real Estate Tax Guide and more below.
How it's calculated
A short-term rental, like an Airbnb, can earn far more than a long-term lease on the same property, but it also costs more to run and carries more risk. The cash flow comes down to how many nights you book, at what rate, minus the fees and fixed costs of operating it.
Start with revenue. It is the nightly rate times the nights you actually book. Take the default. A 200 dollar nightly rate at 65 percent occupancy is about 237 booked nights, for roughly 47,450 dollars of gross revenue a year. Short-term rentals carry higher expenses than a long-term rental, though. Management or co-hosting plus platform fees often take 20 percent of revenue, here about 9,490 dollars, and the fixed costs of mortgage, utilities, insurance, and supplies run 3,000 dollars a month, or 36,000 a year. That leaves about 1,960 dollars of net cash flow, a thin margin.
Occupancy is the number that makes or breaks a short-term rental, and it is the hardest to predict. Seasonality, competition, and local rules all move it. A property that clears at 75 percent occupancy can lose money at 50 percent. Before buying, research real occupancy and rates for comparable listings in the area, and check the local short-term-rental regulations, which are tightening in many cities. Test a range of occupancy rates here to see how sensitive the cash flow is.
Assumptions
- Gross revenue is the nightly rate times occupied nights. Management and platform fees are a share of revenue, and fixed costs are monthly, annualized.
- Cleaning fees are assumed to pass through to cleaners. Seasonality is averaged into one occupancy rate. Local short-term-rental rules and taxes are not modeled.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
Is a short-term rental more profitable than a long-term one?
It can be, since nightly rates add up to more than a monthly lease when occupancy is high. But short-term rentals cost more to run, with higher management fees, utilities, supplies, and turnover, and the income is less predictable. Run both to compare for a specific property.
What occupancy rate should I expect?
It varies widely by location and season, often 50 to 75 percent for an established listing. New listings usually start lower. The safest approach is to look up real occupancy and rates for comparable properties nearby rather than guessing.
What costs do short-term rentals have?
Beyond the mortgage, there are management or co-hosting fees, platform fees, cleaning, utilities, internet, insurance, supplies, and higher maintenance from frequent turnover. These add up to far more than a long-term rental, which is why occupancy has to be strong.
Do I need to worry about local rules?
Yes. Many cities restrict or ban short-term rentals, require permits, or add lodging taxes. A property that pencils out can become worthless as a rental if the rules change. Always check the local regulations before buying for short-term use.