Investing
Short-Term Rental Calculator
A short-term rental can out-earn a long-term lease, or quietly lose to it. A high nightly rate means little at low occupancy, and platform fees, management, cleaning and higher turnover costs take a real bite. The test is net income against what a steady tenant would pay.
Tested against worked examplesHow we verify
Nights booked as a share of the year. 50–70% is typical for an established listing.
Airbnb's host fee is around 3%; some models charge guests instead.
Full-service co-hosts charge 20–30%. Zero if you manage it yourself.
Utilities, internet, supplies, cleaning between stays, restocking.
Insurance, licences, furnishing amortized, extra maintenance.
Net operating income (year): $14,202
Net operating income (year)
$14,202
About $1,184 a month after every cost.
On these figures a long-term tenant nets more with far less work. Note the comparison uses gross long-term rent, so a long lease's own costs would narrow the gap — but the short-term rental still has to clear a lot of fees and effort to justify itself. Occupancy and the management fee are usually what decide it.
- Gross revenue
- $35,588
- Occupied nights a year
- 237
- Platform fees
- $1,068
- Management fees
- $7,118
- Operating expenses
- $13,200
- Trails long-term rent by
- $12,198
- Break-even occupancy
- 31.31%
Below this, the rental loses money.
Compare scenariosTry three values of one input
| Average nightly rate | |||
|---|---|---|---|
| Net operating income (year) | $11,462 | $14,202+$2,740 | $16,943+$5,480 |
| Gross revenue | $32,029 | $35,588+$3,559 | $39,146+$7,118 |
| Platform fees | $961 | $1,068+$107 | $1,174+$214 |
| Management fees | $6,406 | $7,118+$712 | $7,829+$1,424 |
| Trails long-term rent by | $14,938 | $12,198−$2,740 | $9,457−$5,480 |
| Break-even occupancy | 34.79% | 31.31%−3.48% | 28.46%−6.33% |
Every other input stays at the value you set above — currently $150 for average nightly rate. Differences are measured against the first column.
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How this calculator works
Gross revenue is 365 nights times occupancy times the nightly rate. Platform and management fees come off the top, then operating expenses (monthly times twelve plus annual fixed costs) are subtracted for net operating income. Break-even occupancy is the nights needed to cover costs at the net-of-fees nightly rate. The comparison is against long-term gross rent.
The long-term comparison uses gross rent, so a long lease's own costs — which are lower but not zero — would narrow the gap; treat the short-term advantage as an upper bound. The value of your own time managing the property is not counted, and occupancy is assumed steady rather than seasonal. Local regulations, which can eliminate the income entirely, are not modelled.
What this assumes
- Occupancy and nightly rate as entered. Both are seasonal, and annual averages hide months that lose money.
- Cleaning, platform fees, furnishing, utilities and higher wear are included only where entered — they are substantially higher than for a long-term let.
- Local regulation is not checked, and many cities restrict or prohibit short-term letting outright.
What changes this number
- Occupancy rate
- The input most often set optimistically, and the one that decides viability.
- Platform and cleaning fees
- A large recurring share of gross revenue that does not exist in a long-term tenancy.
- Regulation
- Can eliminate the business model entirely with one ordinance, and has in several cities.
A worked example
Take the $150/night at 65%, managed scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Average nightly rate
- $150
- Occupancy rate
- 65%
- Management fee
- 20%
What it returns
- Net operating income (year)
- $14,202
- Gross revenue
- $35,588
- Occupied nights a year
- 237
- Platform fees
- $1,068
- Management fees
- $7,118
On these figures a long-term tenant nets more with far less work. Note the comparison uses gross long-term rent, so a long lease's own costs would narrow the gap — but the short-term rental still has to clear a lot of fees and effort to justify itself. Occupancy and the management fee are usually what decide it.
Try an example
Frequently asked questions
Is a short-term rental more profitable than a long-term one?
It can be, often by a wide margin in strong tourist markets — but not always. High nightly rates are offset by vacancy, platform and management fees, cleaning, higher utilities, and much more work. At moderate occupancy with a management company taking 20–30%, a steady long-term tenant frequently nets more.
What occupancy rate should I expect?
For an established listing, 50–70% is typical, though it swings hard with season and location. New listings start lower while they build reviews. Occupancy is the single most important and most overestimated input — running the numbers at a pessimistic rate is the honest way to test a deal.
What costs do short-term rentals have that long-term ones don't?
Cleaning between stays, higher utilities (guests do not conserve), consumable supplies, furnishing and its wear, platform fees, management or co-hosting fees, and specialised short-term rental insurance. Turnover also means more frequent maintenance. These routinely consume 40–60% of gross revenue.
What is break-even occupancy?
The share of nights you must book to cover all your costs. Below it, the rental loses money. Comparing it to a realistic occupancy estimate is a quick sanity check — if you break even at 30% and expect 65%, there is margin; if you break even at 60%, the deal is fragile.
What about local regulations?
A growing risk. Many cities now cap short-term rental nights, require permits, levy occupancy taxes, or ban non-owner-occupied listings outright. A change in the rules can wipe out the income overnight, and enforcement is tightening. Verify the current local ordinances before buying or converting a property.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.