About this calculator
Short-term rentals (STRs) can produce 1.5–3× the revenue of long-term rentals — but they’re also more volatile, more operationally intensive, and increasingly facing regulatory pressure. This calculator models the cash flow from an Airbnb-style STR including mortgage, fixed costs, host fees, and startup investment.
Nightly rate × occupancy is the engine
Revenue = nightly rate × 365 × occupancy. A property at $200/night with 60% occupancy: $200 × 365 × 0.6 = $43,800 gross. Subtract mortgage ($24k), fixed costs ($7,200), platform fees, and you’re left with cash flow — sometimes great, sometimes negative, depending on inputs.
The occupancy assumption is everything
STR investors often plug in 70%+ occupancy and get amazing pro-formas. Real-world data (AirDNA, Mashvisor, Rabbu) shows market-average occupancy of 50–65% in most metros. Top-quartile STRs can sustain 70–80%, but it requires excellent property, professional management, and dynamic pricing. Plug in your market’s 50th-percentile number, not the marketing-deck number.
What this calculator misses
- Seasonality — beach properties get most of their revenue in 4 months; ski properties similar. Average occupancy hides cash-flow timing risk.
- Restocking and supplies — toilet paper, coffee pods, soap. $50–150/month easily.
- Wear and tear — STRs see 5–10× the turnover of long-term rentals. Furniture and finishes need replacing every 2–4 years.
- Regulatory risk — cities are banning or restricting STRs aggressively (Honolulu, NYC, Barcelona). One ordinance change can destroy the business.
- Property management — full-service STR management runs 20–30% of revenue (vs 8–10% for long-term). Many investors who "save" by self-managing find themselves doing a part-time job.
Comparing to long-term rental
For the same property, STR revenue is often 1.5–3× long-term but operating costs are 3–5× higher. Net cash flow is sometimes only 1.2–1.5× better — for materially more work and risk. The case for STR is strongest in vacation/destination markets where long-term demand is weak.