Short-Term Rental Profit Calculator

Gross rental revenue minus platform fees (typically 3% to 5% for Airbnb hosts), occupancy-dependent variable costs, fixed monthly expenses (mortgage, insurance, HOA), maintenance reserves, and estimated income taxes yields net profit. This calculator models the full picture so you see true cash flow rather than just gross revenue. Local occupancy rates and seasonal demand are the biggest variables and require local market research for accuracy.

If you rent a property for more than 14 days per year and average rental periods are seven days or fewer, net rental income may be considered active business income subject to self-employment tax in addition to ordinary income tax. Properties rented for more than 30 days on average are typically treated as passive rental income. State and local occupancy or lodging taxes may also apply, similar to hotel taxes. Consult a CPA familiar with STR taxation.

Airbnb typically charges hosts a service fee of 3% of the subtotal booking amount (nightly rate plus cleaning fee), deducted before payout. This fee is separate from the guest service fee (up to 14.2%) charged to the guest. Some hosts choose the Host-only fee structure where the host pays a higher fee (approximately 14% to 16%) but the price shown to guests is lower, which can improve search ranking. Fee structures vary by region and listing type.

Occupancy rates for short-term rentals vary widely by location, seasonality, amenities, and competition. National averages typically range from 45% to 65%, but popular tourist markets can exceed 70% in peak season and drop sharply in the off-season. Use data from AirDNA, Mashvisor, or Rabbu to get hyperlocal occupancy estimates before purchasing a property for STR. Conservative projections with a 10% to 15% lower occupancy than market data are wise for planning.