Short Term Rental Calculator
Model a short-term rental before you buy or list. Enter the nightly rate, occupancy, cleaning fee, average stay, operating costs and platform fee: the tool projects monthly and annual gross and net income. Add the property price for break-even occupancy, cap rate, cash-on-cash return and payback period.
Estimate only: uses a 30-day month; ignores seasonality, taxes, mortgage leverage and regulation. Not investment advice.
Worked example, checked against this exact tool
$150/night, 65% occupancy, $80 cleaning fee, 4-night average stays, $1,200/month costs, 3% platform fee. Booked nights = 30 × 0.65 = 19.5; stays = 19.5 ÷ 4 = 4.875. Gross = 150 × 19.5 + 80 × 4.875 = $3,315.00/month; platform fees = $99.45; net = $2,015.55/month = $24,186.60/year. Break-even occupancy = 24.26%. On a $300,000 property: cap rate 8.06%, payback 12.4 years. Enter these numbers and every figure matches.
The formulas
Booked nights = 30 × occupancy. Stays per month = booked nights ÷ average stay. Monthly gross = nightly rate × nights + cleaning fee × stays (the fee is guest-paid revenue). Platform fees = gross × fee %. Net = gross − fees − operating costs; annual = monthly × 12. Break-even occupancy = monthly costs ÷ (effective revenue per occupied night × 30), where effective revenue = (nightly rate + cleaning ÷ avg stay) × (1 − platform fee %). Cap rate = annual net ÷ property price; payback = price ÷ annual net.
Why the cleaning fee matters
Short stays multiply turnover: at 4-night stays and 65% occupancy you turn the unit nearly 5 times a month, so an $80 fee adds $390/month, over 10% of gross. Hosts who model only the nightly rate systematically undervalue short-stay strategies and overvalue long ones. Note the fee is also platform-fee-bearing on most platforms, which the tool accounts for.
Break-even occupancy: your risk line
In the example, 24.26% occupancy covers all costs: anything above is profit. This single number quantifies your margin of safety. A property breaking even at 25% survives a demand shock; one breaking even at 70% does not. When comparing two markets, the lower break-even often beats the higher headline revenue.
Cap rate, cash-on-cash and payback
Cap rate (annual net ÷ price) compares the property against other investments: 8.06% beats most bonds. Cash-on-cash equals the cap rate here because the model assumes no mortgage; with financing, divide by your actual cash invested instead. Payback (12.4 years) tells you when cumulative profit repays the purchase. All three move with occupancy, so stress-test at 10–15 points below your expected rate.
What competing calculators miss
Revenue estimators stop at gross income; investor guides list cap rate and break-even as concepts without computing them. The seasonality planners that do publish formulas match this tool’s core math exactly. This page unites both: the full revenue build-up with per-stay cleaning economics, plus the investor KPI panel and the break-even risk line.
Frequently asked questions
How is short-term rental income calculated?
Gross = nightly rate × booked nights + cleaning fee × stays; net subtracts platform fees and operating costs. Example: $150/night at 65% = $2,015.55/month net.
What is a good occupancy rate for Airbnb?
60–75% is typical for established listings; under 50% usually signals a pricing or positioning problem.
What is break-even occupancy?
The occupancy at which revenue exactly covers costs: monthly costs ÷ (effective revenue per night × 30). Lower is safer.
What is a good cap rate for a short-term rental?
STR cap rates of 6–10% are common in the example’s math; compare against local long-term rental yields and your required return.
Should the cleaning fee count as revenue?
Yes, if guests pay it to you: it is income, though turnover labor usually consumes most of it. The tool includes it in gross and in platform fees.
How do platform fees work?
Airbnb’s host-only fee is around 15.5% on newer structures (older split-fee accounts ~3%); VRBO varies. Enter your actual fee: it applies to the nightly rate plus guest fees.
What costs do hosts forget?
Turnover labor, utilities, internet, supplies, maintenance, insurance, licensing, local taxes and income tax on the profit.
How does seasonality affect the estimate?
This tool uses one average occupancy; real properties swing 20–40 points between peak and off-season. Model your low season separately.
Is cash-on-cash the same as cap rate here?
Only without a mortgage. With financing, cash-on-cash = annual cash flow ÷ cash actually invested (down payment + closing).
Short-term vs long-term rental: which earns more?
STR usually grosses 2–3× long-term rent but with higher costs, effort and vacancy risk. Compare this tool’s net against the alternative monthly rent.