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Short-Term Rental Calculator

STR underwriting is different from long-term rental — revenue depends on ADR × occupancy, and costs scale with turnover volume. This calculator prices it end-to-end.

$
%
$
%

Airbnb host 3%

$
%

STR mgmt 15-25%

$

utils, wifi, insurance, subs

Annual gross revenue

$58,966

Net after operating costs

$28,002

before mortgage

Booked nights / year

230

Annual turnovers

66

RevPAR

$135

revenue per available night

How the math works

Short-term rental underwriting depends on three variables: ADR (daily rate), occupancy, and average stay length. Platform fees, cleaning costs, and management fees eat a meaningful share of gross. Focus on RevPAR (revenue per available night) to benchmark vs local STR competition.

The ADR × occupancy product is your revenue lever. Shorter stays mean more cleanings and more turnover cost but also more booking flexibility. Pro tip: minimum-stay rules (2-3 nights) dramatically reduce cleaning expense without destroying occupancy.

How to Use

  1. Enter ADR (average daily rate) from local comps — AirDNA is the standard data source.
  2. Enter expected occupancy. Tourist destinations 60-75%; urban locations 50-65%.
  3. Enter cleaning fee charged to guest and average stay length.
  4. Enter platform fee, cleaning cost to owner, and management fee.
  5. Add monthly fixed costs (utilities, wifi, insurance, subscriptions).

Frequently Asked Questions

How do I estimate ADR for a property?

Use AirDNA's MarketMinder or Rabbu for free estimates. Or manually pull 5-10 comparable STRs in your area and average their nightly rate at your target season. Hosts often publish annual revenue too.

What's a realistic occupancy?

Established listings in tourist destinations run 60-75%. Year-one hosts usually achieve 40-55% while building reviews. Urban markets run 50-65% with more weekday slack. Beware listings that claim 85%+ — rare.

Is 20% management fee worth it?

For remote owners, yes — professional management handles booking, pricing, cleaning coordination, guest issues. Self-manage saves the 20% but is a real part-time job. Semi-automated with a co-host can split the difference at 10-15%.

What about STR regulations?

Many cities now restrict or prohibit STRs. Check permit requirements, occupancy limits, hotel tax obligations, and HOA rules before buying. Regulation risk is the biggest overlooked STR downside.

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