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STR vs LTR Calculator

STR sometimes produces dramatically more cash flow than LTR — but not always. This calculator compares the two structures on the same property with honest operating cost and regulation-risk assumptions, so you can pick the right rental model.

STR annual gross

STR opex % of gross

cleaning, mgmt, platform, utils

LTR monthly rent

LTR opex % of gross

Furnishing investment (for STR)

Annual PITIA

STR regulation risk

STR annual cash flow

$8,432

LTR annual cash flow

-$5,536

STR advantage

$13,968

STR − LTR

Furnishing payback (years)

1.6

Recommendation

STR

How the math works

Short-term rental typically produces 1.5-3× the gross of long-term rental, but operating costs are 2-3× higher. Net cash flow difference depends heavily on market, occupancy, and regulation risk. LTR has much lower variance and near-zero management overhead.

Regulation risk is the hidden factor. A city that bans or severely restricts STRs can cut revenue 60%+ overnight. Make sure STR premium is large enough to absorb regulation risk and still beat LTR on a risk-adjusted basis.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This STR vs LTR Calculator is built to give a quick, browser-based estimate for str vs ltr. STR sometimes produces dramatically more cash flow than LTR — but not always. This calculator compares the two structures on the same property with honest operating cost and regulation-risk assumptions, so you can pick the right rental model. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the str vs ltr result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this str vs ltr estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter STR annual gross and typical STR opex %.
Enter LTR monthly rent and LTR opex %.
Enter furnishing investment for the STR option.
Enter annual PITIA common to both.
Set regulation risk — major factor in STR-restrictive cities.

Frequently Asked Questions

When is STR clearly better?

Tourist destinations with year-round demand and limited regulation. Vacation markets, resort towns, and destination cities with 60%+ occupancy and 2-3× LTR gross. Margin difference $15k+/year typically justifies the management load.

When does LTR win?

Slow tourism markets, heavy STR regulation, or when you don't want to manage daily operations. LTR has 5× less time commitment and more predictable income — often the better default for first-time landlords.

What's the biggest STR risk?

Regulation change. Cities from Santa Monica to NYC have severely restricted or banned STRs. Read local news and planning commission agendas before buying primarily for STR — don't assume current rules stay.