Short-term rentals

Airbnb Investment Calculator: Will a Short-Term Rental Pay?

Short-term rentals can out-earn long-term leases — but only after a much heavier cost stack. Here's how to evaluate an Airbnb investment properly before you buy or convert.

Start with ADR and occupancy

Your revenue is roughly ADR × 365 × occupancy. An average daily rate of $250 at 68% occupancy earns about $62,000 a year. Use real comps from your market — optimistic occupancy assumptions are the most common way STR analyses go wrong.

Don't forget the STR cost stack

Short-term rentals carry costs long-term rentals never do: cleaning and turnover, platform fees, higher management (15–25%), owner-paid utilities, supplies, furniture reserves and pricier insurance. These can eat 50%+ of revenue.

Always compare to long-term rent

The real question isn't 'does Airbnb make money?' — it's 'does it make more money than just leasing the place, after all that extra work and cost?' A good STR model shows this comparison directly.

Run the numbers automatically

Airbnb / Short-Term Rental Calculator

Stop computing this by hand. The Airbnb / Short-Term Rental Calculator does it for you — instantly, with a clear verdict at the end. One-time $34, works in Excel & Google Sheets.

View the Airbnb / Short-Term Rental Calculator

FAQ

What occupancy rate should I assume?
Be conservative — pull comps for your specific area and property type. Many markets average 50–70%. Test a pessimistic scenario, not just the best case.
Is Airbnb always better than long-term renting?
No. After cleaning, fees, management and furnishing, some STRs earn less than a simple lease. Model both side by side before deciding.

← Or start with the free Quick Calculator