Short-Term Rental Calculator

How short-term rental income adds up

A short-term rental, listed on platforms such as Airbnb or Vrbo or booked directly, earns per night instead of per month. That means income depends on three numbers you can only estimate in advance: the average nightly rate, the occupancy (share of nights booked) and the average length of stay, which decides how many cleanings you pay for.

Nights booked per month = 365 ÷ 12 × occupancy
Stays = nights booked ÷ average stay
Revenue = nights × nightly rate + stays × cleaning fee
Profit = revenue − platform fees − management − cleaning costs − maintenance − fixed costs

Platform fees depend on the site and the fee model you use: some charge the host a small share and the guest a separate service fee, while a host-only fee takes a larger share, often around 15%, from the host. Check the fee line on a recent payout. Occupancy taxes (hotel or lodging taxes) are usually collected from guests and passed to the tax authority, either by the platform or by you; they are not your income, so leave them out of the nightly rate.

Worked example

A one-bedroom condo rents for $200 a night at 65% occupancy, with stays of 3 nights, a $100 cleaning fee and a cleaner who charges $85. Platform fees are 15% and the host self-manages. Fixed costs: $1,800 mortgage, $350 utilities and internet, $100 supplies, $150 insurance, $250 property tax and $50 software and permits.

• Nights booked: 30.4 × 0.65 = about 19.8 a month, or 6.6 stays.
• Revenue: 19.8 × $200 + 6.6 × $100 ≈ $4,613.
• Platform fees ≈ $692; cleaning ≈ $560; 5% maintenance ≈ $231; fixed costs $2,700.
• Profit ≈ $430 a month, about $5,160 a year. The break-even occupancy is about 56%.

At 50% occupancy the same unit loses about $292 a month. Hiring a manager at 20% of revenue turns the 65% case into a loss of about $492 and pushes break-even occupancy to about 80%. Short-term rentals have much higher fixed costs than long-term rentals because the owner pays utilities, furnishings, supplies and more insurance, so occupancy is the number to test most carefully.

Estimating occupancy and nightly rates

• Look at similar listings nearby: same size, number of guests, amenities and location. Booked calendars over a full year tell you more than the rate shown for next weekend.
• Most markets are seasonal. A beach or ski area may be nearly full for a few months and quiet the rest of the year, so use a yearly average, not peak-season numbers.
• New listings often start with lower rates and fewer bookings until they have reviews.

Rules, permits and taxes

Many U.S. cities and counties limit short-term rentals: some require a permit or registration, some only allow rentals in a home you live in, and some ban stays shorter than 30 days. Homeowners associations and condo boards may have their own rules, and landlords usually prohibit subletting. Check local rules before you buy or furnish a property.

Rental income is taxable. If the average guest stay is seven days or less and you provide hotel-like services, the tax treatment can differ from a normal rental; IRS Publication 527 explains how personal use of the home and the length of stays affect what you can deduct. A tax professional can help you set this up correctly.

Short-term or long-term?

A short-term rental can earn more gross income than a yearly lease, but with more work, more costs and more risk. To compare fairly, run the same property through the rental property calculator with a long-term rent and compare the profit after all costs, not the revenue.

Frequently asked questions

Sources

• Internal Revenue Service. Publication 527, Residential Rental Property (rental of a dwelling unit used as a home, personal use days).
• Internal Revenue Service. Topic no. 415, Renting residential and vacation property.

Last reviewed 3 November 2026. Results are estimates; see our disclaimer.