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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.

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cleaning, mgmt, platform, utils

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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.

How to Use

  1. Enter STR annual gross and typical STR opex %.
  2. Enter LTR monthly rent and LTR opex %.
  3. Enter furnishing investment for the STR option.
  4. Enter annual PITIA common to both.
  5. 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.

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