TrueYieldCalc

All calculatorsChoose a strategy

Short-term rental calculator

Enter your own nightly rate and occupancy to see what a short-term rental keeps after platform fees, cleaning, running costs and the mortgage, the occupancy you need to break even, and how it compares with a long-term tenant.

Bookings

Average across the year, before taxes.

Share of the year's nights that are booked.

Per stay, paid by the guest.

Airbnb: 15.5% for most hosts. Vrbo: 12%. Charged on nights and cleaning fees.

Costs

Toiletries, coffee, linens wear.

Per month.

Per year.

Of booking revenue.

Of revenue after the platform fee. 0 if you host yourself.

Principal and interest, per month.

Down payment, closing costs and furnishing.

Compare: long-term tenant

The tenant pays utilities.

Yearly cash flow, short-term

$1,192

$99 a month. Cash-on-cash return 1.59%.

219 nights at $180
$39,420
Cleaning fees, 73 stays
$6,570
Platform fee (15.5%)
− $7,128
Cleaning and supplies
− $6,570
Utilities, insurance, tax, HOA
− $9,600
Repairs and management
− $2,300
Mortgage
− $19,200
Cash flow, short-term
$1,192
Break-even occupancy
57.6%
Cash flow, long-term tenant
−$3,380
Short-term earns more by
$4,572

How it is calculated

Cash flow = Nights × rate + cleaning fees − platform fee − per-stay costs − running costs − mortgage

Nights and stays
Booked nights are 365 × occupancy. Stays are booked nights ÷ average stay, which sets how many cleaning fees you charge and how many cleanings you pay for.
Platform fee
Airbnb’s Help Center says most hosts pay 15.5% under its host-only fee, which it now requires for most hosts, charged on the nightly price and any fees the host charges. Vrbo’s help pages list a 12% commission on the rental amount and extra fees, including payment processing. Your own rate may differ, so check your account.
Break-even occupancy
The occupancy at which yearly cash flow is zero. Below it, the rental loses money. Cash flow rises in a straight line with occupancy, so the calculator finds it exactly.
Long-term comparison
The same home let to a tenant, with the same insurance, tax, HOA, repairs rate and mortgage. The tenant pays utilities, and there is no platform fee or cleaning.

Worked example

  1. A home earns $180 a night at 60% occupancy: 219 nights, or 73 stays of 3 nights. Nights bring in $39,420 and a $90 cleaning fee per stay adds $6,570, for $45,990 in total.
  2. The 15.5% platform fee on that total is $7,128. Cleaning ($75) and supplies ($15) for 73 stays cost $6,570.
  3. Utilities cost $3,600 a year, insurance, tax and HOA $6,000, repairs at 5% of revenue $2,300, and the mortgage $19,200. The owner hosts without a manager.
  4. That leaves $1,192 a year, a 1.59% cash-on-cash return on $75,000 invested.
  5. Break-even occupancy is 57.6%. About 9 fewer booked nights in the year would take it to zero.
  6. Let to a long-term tenant at $2,200 a month instead, after 5% vacancy and 8% management, the same home loses $3,380 a year, so short-term earns $4,572 more here.

What moves the result

Occupancy and nightly rate are estimates, and small changes matter. In the example, occupancy 2.4 points lower wipes out the profit. Compare your break-even with what similar listings nearby actually achieve across a whole year, not their best month.

Short stays cost more to run. Every stay brings a cleaning, supplies and a platform fee on the cleaning fee as well. A longer average stay or a higher cleaning fee can change the result more than a higher nightly rate.

Cities and counties can restrict short-term rentals, require permits or registration, and charge occupancy taxes. Occupancy taxes charged to guests are passed on to the taxing authority, so they are left out here. Check the local rules before buying a property for this use.

This calculator works before income tax and leaves out replacing furnishings, seasonal swings in rate, and the time hosting takes. The results are estimates, not advice.

Common questions

How much does Airbnb charge hosts?

Airbnb’s Help Center says most hosts pay 15.5% under its host-only fee structure, with other hosts typically paying 14% to 16%. The fee is a percentage of the nightly price and any fees the host charges, such as cleaning. The older split fee, about 3% for most hosts, is being phased out. Check your own listing’s rate.

How much does Vrbo charge hosts?

Vrbo’s help pages list a 12% pay-per-booking commission on the rental amount and extra fees, which includes payment processing when Vrbo handles the payment. It is not charged on taxes or refundable deposits.

What occupancy do I need to break even?

It depends on your costs. The calculator finds the exact occupancy at which yearly cash flow is zero. If that is close to what similar listings achieve, the plan has little room for a slow year.

Does personal use of a vacation home change the taxes?

Yes. IRS Publication 527 treats a unit as your home if you use it personally for more than 14 days or 10% of the days it is rented at a fair price, whichever is greater, and that limits rental deductions. If you use it as a home and rent it for fewer than 15 days in the year, you don’t report the rental income or expenses.

Is a short-term rental a rental activity for tax?

Not always. IRS Publication 925 says an activity isn’t a rental activity if the average period of customer use is 7 days or less, which changes how losses are treated. A tax professional can tell you how it applies to you.

Related calculators