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Short-Term Rental Calculator

Compare Airbnb STR income vs long-term rental returns

STR Annual Net

$10,343

LTR Annual Net

$22,800

STR Advantage

-$12,458

Booked Nights

255

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STR vs LTR Comparison

LTR Wins by $12,458/yr

STR Annual Net

$10,343

LTR Annual Net

$22,800

STR Monthly Net

$862

Booked Nights

255

STR Expense Breakdown

Cleaning Costs$8,160
Platform Fees$1,148
Furnishing (Annual)$15,000
Utilities$3,600
Total STR Expenses$27,908

Annual Income Comparison

STR Gross Revenue$38,250
STR Net Income$10,343
LTR Net Income$22,800

Frequently Asked Questions

Q

How do you calculate short-term rental income?

STR Annual Income = Nightly Rate x 365 x Occupancy Rate - (Cleaning Costs + Platform Fees + Furnishing Amortization + Utilities). For a $150/night property at 70% occupancy: Gross = $150 x 256 nights = $38,325, minus expenses for net income.

  • Booked nights = 365 x occupancy rate (70% = 256 nights/year)
  • Airbnb host fee typically 3% of booking subtotal
  • Cleaning costs: $75-$150 per turnover, 6-10 turnovers/month
  • Furnishing costs $10,000-$25,000, amortized over 12 months
  • Utilities run $200-$400/month higher than LTR due to guest usage
Cost CategoryMonthlyAnnual% of Revenue
Cleaning ($85 x 8)$680$8,16021%
Platform Fees (3%)$96$1,1503%
Furnishing$1,250$15,00039%
Utilities$300$3,6009%
Q

What occupancy rate do I need for STR to beat long-term rental?

Most STR properties need 50-65% occupancy to match long-term rental income after expenses. At $150/night with typical costs, 55% occupancy roughly equals $2,000/month LTR. Above 65%, STR income significantly exceeds LTR returns.

  • Break-even occupancy depends on nightly rate and expense structure
  • Urban markets average 65-75% occupancy year-round
  • Seasonal markets may swing from 30% (off-season) to 95% (peak)
  • AirDNA reports national average STR occupancy at 56% in 2025
  • Factor in management time: STR requires 10-15 hours/month vs 2-3 for LTR
OccupancySTR Annual NetLTR Annual NetWinner
50%$15,600$22,800LTR
65%$24,100$22,800STR
75%$29,700$22,800STR
Q

What are typical Airbnb host fees and expenses?

Airbnb charges hosts a 3% service fee per booking. Total STR operating expenses typically run 35-50% of gross revenue including cleaning, platform fees, supplies, utilities, and furnishing replacement costs.

  • Airbnb host-only fee: 3% (vs split fee: 14-16% from guests)
  • VRBO charges 5% host fee or 8% for pay-per-booking
  • Cleaning: $75-$200 per turnover depending on property size
  • Supplies and consumables: $30-$60 per guest stay
  • Insurance: STR-specific policy costs $1,500-$3,000/year more than standard
Q

How does STR compare to LTR for investment returns?

STR properties can generate 1.5-3x the gross income of LTR but have 2-3x higher expenses and require active management. Net returns for well-managed STRs in strong markets typically exceed LTR by 20-40% after all costs.

  • STR gross income: typically 1.5-3x equivalent LTR monthly rent
  • STR expenses: 35-50% of gross vs LTR at 5-15% of gross
  • STR requires active management or 20-25% property manager fee
  • LTR has more predictable income and lower turnover costs
  • STR offers flexibility for personal use during off-peak periods
FactorShort-Term RentalLong-Term Rental
Gross Income$38,000-$55,000$24,000-$30,000
Expense Ratio35-50%5-15%
ManagementActive / 20-25% feePassive / 8-10% fee
Vacancy RiskSeasonal swingsStable occupancy
Q

What is the best nightly rate strategy for STR?

Dynamic pricing tools like PriceLabs and Beyond Pricing optimize nightly rates based on demand, seasonality, and local events. Most hosts see 10-20% revenue increase with dynamic pricing versus flat rates year-round.

  • Base rate: research comparable listings within 1 mile on AirDNA
  • Weekend premium: typically 15-30% above weekday rates
  • Seasonal adjustment: peak rates 50-100% above base in tourist markets
  • Minimum stay: 2-3 night minimum reduces turnover costs by 25-40%
  • Last-minute discounts: 10-20% off for bookings within 3 days

Example Calculations

1Urban Condo: $150/night at 70% Occupancy

Inputs

Nightly Rate$150
Occupancy Rate70%
Cleaning Fee per Turnover$85
Turnovers per Month8
Platform Fee3%
Furnishing Cost$15,000
Monthly Utilities$300
LTR Monthly Rent$2,000
LTR Vacancy5%

Result

STR Annual Net Income$10,488
STR Gross Revenue$38,400
STR Total Expenses$27,960
LTR Annual Net$22,800
STR Advantage-$12,435

Booked nights = 365 x 0.70 = 256. Gross = $150 x 256 = $38,325 (rounding from 255.5). Cleaning = $85 x 8 x 12 = $8,160. Platform = $38,325 x 0.03 = $1,150. Furnishing = $15,000. Utilities = $300 x 12 = $3,600. Expenses = $8,160 + $1,150 + $15,000 + $3,600 = $27,910. Net = $38,325 - $27,910 = $10,415. LTR net = $2,000 x 12 x 0.95 = $22,800.

2Beach House: $250/night at 60% Occupancy

Inputs

Nightly Rate$250
Occupancy Rate60%
Cleaning Fee per Turnover$120
Turnovers per Month6
Platform Fee3%
Furnishing Cost$20,000
Monthly Utilities$400
LTR Monthly Rent$2,800
LTR Vacancy8%

Result

STR Annual Net Income$19,668
STR Gross Revenue$54,750
LTR Annual Net$30,912

Booked nights = 365 x 0.60 = 219. Gross = $250 x 219 = $54,750. Cleaning = $120 x 6 x 12 = $8,640. Platform = $54,750 x 0.03 = $1,643. Furnishing = $20,000. Utilities = $400 x 12 = $4,800. Expenses = $8,640 + $1,643 + $20,000 + $4,800 = $35,083. Net = $54,750 - $35,083 = $19,668. LTR net = $2,800 x 12 x 0.92 = $30,912.

Formulas Used

STR Annual Net Income

STR Net = (Nightly Rate x 365 x Occupancy) - (Cleaning + Platform Fees + Furnishing/12 + Utilities)

Calculates annual short-term rental profit after all operating expenses.

Where:

Nightly Rate= Average nightly booking rate in dollars
Occupancy= Annual occupancy rate as a decimal (e.g., 0.70)
Cleaning= Annual cleaning costs (fee per turnover x turnovers x 12)
Platform Fees= Annual Airbnb/VRBO host service fees
Furnishing= Total furnishing cost amortized monthly over 12 months
Utilities= Annual utility costs (monthly x 12)

LTR Annual Net Income

LTR Net = Monthly Rent x 12 x (1 - Vacancy Rate)

Calculates annual long-term rental income adjusted for vacancy.

Where:

Monthly Rent= Long-term monthly rental rate
Vacancy Rate= Annual vacancy rate as a decimal (e.g., 0.05)

STR Break-Even Occupancy

Break-Even Occ = (LTR Net + STR Expenses) / (Nightly Rate x 365)

The minimum occupancy rate needed for STR income to match LTR income.

Where:

LTR Net= Annual long-term rental net income
STR Expenses= Total annual STR operating expenses
Nightly Rate= Average nightly booking rate

Short-Term Rental vs Long-Term Rental Analysis

The short-term rental market has transformed real estate investing. Platforms like Airbnb and VRBO enable property owners to earn significantly more than traditional long-term leases, but higher gross income comes with higher expenses and active management requirements.

Our calculator models the complete STR financial picture: gross revenue from nightly rates and occupancy, minus cleaning costs per turnover, platform fees, furnishing amortization, and utilities. It then compares your net STR income against equivalent long-term rental returns.

The key decision factor is not just income but total return on your time and capital. A property netting $5,000 more per year as an STR but requiring 15 hours monthly of management may not justify the switch for every investor.

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Last Updated: Mar 25, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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