Short-Term Rental Income Calculator

Gross revenue = average nightly rate x occupancy rate x 365. A property charging $150/night at 65% occupancy earns about $35,600/year gross. Tools like AirDNA and Mashvisor provide market-level occupancy and rate data by zip code. Typical urban STRs run 55-70% occupancy; seasonal destinations range from 20% in the off-season to 90% during peak weeks. Always model a conservative case alongside your base case.

Platform fees (Airbnb charges hosts about 3%, VRBO about 5%), cleaning fees between stays, consumable supplies (toiletries, coffee, linens), utilities, property management if you hire one (typically 20-30% of revenue), regular maintenance, mortgage, property taxes, and insurance. STR insurance runs higher than standard homeowner coverage. Furnishing replacement and occasional deep cleans also add up. Net income is often 40-60% of gross revenue.

RevPAR stands for Revenue Per Available Room, calculated as occupancy rate x average daily rate. A listing at $200/night with 60% occupancy has a RevPAR of $120. It is the standard STR performance metric because it captures both price and demand in one number. A listing with high nightly rates but low occupancy can have the same RevPAR as one with lower rates and higher occupancy. Compare your RevPAR to local comps to gauge competitive performance.

Break-even occupancy is the minimum occupancy rate needed to cover all fixed costs: mortgage, insurance, taxes, platform fees, and management. Divide your total fixed monthly costs by the average nightly rate to find the minimum nights needed, then divide by 30 for the occupancy percentage. A well-priced STR in a strong market typically breaks even at 30-40% occupancy. If you need 70%+ just to cover costs, the deal has little margin for seasonality or regulation changes.