What is Airbnb & Short-Term Rental?
A short-term rental (Airbnb / VRBO) can out-earn a long-term lease — but it carries higher expenses and swings with occupancy. This calculator turns your nightly rate and occupancy into monthly revenue, cash flow, and a break-even occupancy.
Break-even occupancy is the number that matters most: the share of nights you must book just to cover costs. The lower it is, the more cushion you have in a soft season.
Formula
Monthly revenue = nightly rate × 30 × occupancy. Cash flow = revenue − management − fixed costs − other expenses − mortgage. Break-even occupancy = costs ÷ (nightly rate × 30).
How to read it
- STR expenses are higher than long-term rentals — cleaning, utilities, supplies, management (often 20%+), and furnishing.
- If break-even occupancy is above what comparable listings actually achieve, the deal is fragile.
- Model a conservative occupancy and nightly rate — off-season and new-listing ramp-up are real.
Frequently asked questions
- What's a good occupancy rate for Airbnb?
- It varies by market and season, but many viable listings run 50–70% annual occupancy. What matters is whether your break-even occupancy sits comfortably below what comparable local listings actually book.
- Are short-term rentals more profitable than long-term?
- Often yes on gross revenue, but not always on net — higher expenses, management, and vacancy risk eat into it. Run both a long-term and STR analysis before deciding.