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Nightly Rate Calculator

The right nightly rate balances occupancy, margin, and local comp pricing. Too high and the calendar sits empty; too low and you give away profit. This calculator derives the nightly rate that hits your target monthly revenue at realistic occupancy — plus a floor that guarantees margin over operating cost.

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Recommended nightly rate

$294

Peak season nightly

$382

Off-peak nightly

$221

Target-revenue nightly

$294.12

Margin-floor nightly

$157.14

Booked nights / month

18

Gross revenue before platform fee

$5,294

How the math works

Two constraints: (1) the rate you need to hit monthly revenue at expected occupancy, and (2) the rate that preserves your minimum margin over operating cost per night. Use the higher of the two. Below the margin floor, you're subsidizing guests with the property's equity.

Peak vs off-peak: apply multipliers to the base rate — 1.25-1.5x for peak (beach summer, ski winter, holidays), 0.65-0.80x for deep off-peak. Most dynamic pricing tools apply a similar pattern automatically. The static rate here gives you a starting anchor; the tools earn their keep in week-to-week adjustments.

How to Use

  1. Enter target monthly revenue (net of platform fees) and expected occupancy.
  2. Enter operating cost per booked night (cleaning, utilities, supplies, management) to get a margin floor.
  3. Set seasonality factor — weekly peak vs off-peak variation the rate should flex by.
  4. See target nightly rate, margin-floor rate, and peak/off-peak bands.

Frequently Asked Questions

How do I pick realistic occupancy?

Check AirDNA or Rabbu for your specific ZIP. The posted market occupancy (e.g., 62%) represents well-optimized active listings. New listings hit 65-75% of that in year one. So if market is 62%, underwrite at 42-48% for a new listing and 55-65% once established.

What's a healthy margin over operating cost?

Target 60-80% gross margin. On a $200 nightly booking with $80 operating cost (cleaning + utilities + supplies + mgmt), your margin is 60% — healthy. Below 50% margin means you're running a cleaning business with a marketing budget; the property is barely contributing.

Should I match comp pricing?

Match within 10% of your closest 3-5 comps with similar bedroom count, amenities, and guest rating. If you're 20%+ below comps, you're leaving money on the table — guests read it as 'what's wrong?' If you're 20%+ above, you need to justify with unique amenity (hot tub, view, pool).

How often should I adjust?

Weekly during peak season, bi-weekly off-peak. Dynamic pricing tools (PriceLabs, Wheelhouse, Beyond) automate it at $10-$30/month. Manual hosts who review every 10-14 days and nudge 5-10% capture most of the lift at zero software cost.

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