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Worksheet 07 · Short-term rental

Airbnb calculator: short-term rental profit

Short-term rental profit is nightly revenue plus cleaning fees, minus platform fees, cleaning, operating costs and the mortgage. At $215 a night and 64% occupancy, this Airbnb calculator example books 234 nights, grosses $57,159 and clears $281 a month after the mortgage.

Cap Rate Calculator editorial teamUpdated 6 sources

Worksheet 07

Short-term rental profit

Airbnb, Vrbo or direct bookings

Bookings

$
%
nights
$
%

Operating costs

$
$
$
$
$
$
%
%

Purchase and loan

$
%
$
$
%
years
Monthly cash flow$281after the mortgage, before tax
Annual NOI$27,319
Cap rate6.83%NOI ÷ price
Cash-on-cash2.59%
Booked nights
234
Stays per year
73
Revenue per available night
$156.60
Break-even occupancy
58.6%
Break-even nightly rate
$197 at 64%
Nightly revenue$50,224
Cleaning fees collected$6,935
Gross booking revenue$57,159
Less: Platform fees (15.5%)($8,860)
Less: Turnover cleaning($6,205)
Less: Taxes, insurance, utilities, HOA, supplies($12,360)
Less: Maintenance and management($2,415)
Net operating income$27,319
Less: Debt service($23,951)
Annual cash flow$3,368
Where each booking dollar goes
  • Platform fees 16%
  • Cleaning 11%
  • Other costs 26%
  • Mortgage 42%
  • Cash flow 6%

Formula. Booked nights = 365 × occupancy. Gross revenue = nights × nightly rate + stays × cleaning fee. NOI = gross − platform fees − turnover cleaning − fixed costs − maintenance and management. Cash flow = NOI − debt service.

How to estimate Airbnb income

Short-term rental income is booked nights times the average nightly rate, plus cleaning fees, less the platform's fee.

Gross revenue=365 × occupancy × nightly rate + stays × cleaning fee

Occupancy, average daily rate (ADR) and revenue per available night are the standard lodging measures; revenue per available night is simply revenue divided by all nights in the year, booked or not.[1] In the example, revenue per available night is $156.60.

The same home at different occupancy levels (annual)
OccupancyNightsGross revenueNOIMonthly cash flow
40%146$35,724$12,440($959)
50%183$44,655$18,640($443)
60%219$53,587$24,839$74
70%256$62,518$31,039$591
80%292$71,449$37,239$1,107

Because most costs are fixed, profit rises much faster than occupancy. The flip side is that a slow season can turn a profitable listing into a loss.

Platform fees

Airbnb is moving most hosts to a single, host-only service fee: most hosts pay 15.5%, and the rest typically pay 14% to 16%. The older split fee, in which most hosts pay 3% and guests pay a separate 14.1% to 16.5% service fee, is being phased out.[2][3] Enter the percentage shown on your own payouts; under a split fee, enter only the host's share, because the guest's fee does not reduce your payout. Fees change, so check before relying on the default.

Lenders discount short-term rental income heavily: when qualifying a one-unit investment property, Fannie Mae counts 50% of short-term rental income and says the other half accounts for vacancy losses and maintenance.[4]

Break-even occupancy and nightly rate

Break-even occupancy is the share of nights you must book for cash flow to reach zero; in the example it is 58.6%. The break-even nightly rate answers "how much should I charge": at 64% occupancy, any rate below $197 loses money after the mortgage. Both are worked out from the same costs and fees you entered.

Break-even occupancy=Fixed costs + debt service365 × net revenue per booked nightNet revenue per booked night is the nightly rate plus the cleaning fee per night, after platform fees, cleaning and percentage costs.

Short-term vs long-term rental

A short-term rental usually grosses more than a lease, but it carries cleaning, furnishing, supplies, utilities and much more of the owner's time. To compare both on the same property, use the rent vs Airbnb calculator. For a conventional lease, the rental property calculator is the better model.

Taxes and rules to check

  • Personal use. If you use the home yourself for more than the greater of 14 days or 10% of the days it is rented, the IRS treats it as a home you live in; expenses are then split between rental and personal use by days. If it is rented fewer than 15 days in the year, the rent is not included in income.[5]
  • Local rules. Many cities require short-term rental permits, cap the nights a home can be rented, or collect occupancy taxes. Check before buying.
  • Insurance. A standard landlord or homeowner policy may not cover paying guests.

Estimates onlyOccupancy and nightly rates are your assumptions. Results can differ widely from what a listing actually earns, and property values and rental income can both fall.[6]

See also the cash-on-cash return calculator for the return on your cash with any rental.

Frequently asked questions

How much can I make on Airbnb?

Multiply the nights you expect to book by your average nightly rate, add cleaning fees, then subtract platform fees, cleaning, utilities, supplies, taxes, insurance, maintenance and the mortgage. The worksheet does each step and shows the result per month.

How much should I charge per night on Airbnb?

At least the break-even nightly rate shown in the results, which covers every cost at your expected occupancy. What guests will pay depends on comparable listings nearby.

What occupancy rate should I assume?

Use the booking history of similar listings in the same area and season if you can. Running the table above at several occupancy levels shows how sensitive the result is.

Is Airbnb income taxable?

Yes, rental income is generally taxable. U.S. rules for homes you also use personally are in IRS Publication 527; other countries have their own rules.

Sources

  1. Tran, X. Revenue Management Illustrated, ch. 2: Revenue Management Measurement · University of West Florida Pressbooks, September 10, 2024
  2. Airbnb service fees (Help Center article 1857) · Airbnb, accessed November 13, 2026
  3. Simplifying Airbnb service fees · Airbnb Resource Center, updated October 13, 2026
  4. B3-3.8-03, Rental Income from the Subject Property: Short-Term Rental (Selling Guide) · Fannie Mae, September 2, 2026
  5. Publication 527 (2025), Residential Rental Property · Internal Revenue Service, for 2025 returns
  6. Buying an investment property · ASIC Moneysmart, September 29, 2026