About the Short-Term vs Long-Term Rental Calculator
A short-term rental (STR) on Airbnb or Vrbo can gross far more than a traditional year-long lease, but it also costs far more to run: cleaning every turnover, platform fees, higher management fees, utilities, supplies and furnishing. This short-term vs long-term rental calculator runs both scenarios on the same property so you can see which actually leaves more profit.
Enter the nightly rate, expected occupancy, average stay length, the cleaning fee you charge guests and what each clean costs you, plus STR management, platform fees and utilities. Then enter the long-term rent, vacancy and management fee. Costs that are the same either way — mortgage, property tax, base insurance — go in one shared field.
The calculator also finds the break-even occupancy: the occupancy at which Airbnb earns exactly what a long-term lease would. If your market’s realistic occupancy is well above that, STR has room for error; if it is close, the extra work and risk may not be worth it. Check local short-term rental rules and permits before you commit.
With the default inputs, the short-term rental advantage per year is $1,937.22. Change any value above to recalculate instantly.
How to use the short-term vs long-term rental calculator
- 1Enter the nightly rate, occupancy and average stay from comparable listings.
- 2Add cleaning fees and costs, platform and management fees, utilities and extra STR costs.
- 3Enter the long-term rent, vacancy and management fee for the same property.
- 4Enter costs you pay either way, such as mortgage and property tax.
- 5Compare yearly profit and check how far your occupancy is above break-even.
Formula and method
Booked nights are 365 × occupancy and the number of stays is booked nights ÷ average stay length. STR revenue is nightly income plus the cleaning fee charged on each stay; platform and management fees f are a percentage of that revenue, cleaning costs are paid per turnover, and utilities plus extra STR costs are fixed each year.
Long-term profit is rent collected after vacancy, less the management percentage m. Shared costs such as the mortgage and property tax are subtracted from both, so they do not change the advantage. Break-even occupancy solves STR profit = LTR profit for occupancy, using the net profit earned per booked night. The one-time furnishing cost is excluded from yearly profit and shown as a payback period instead.
- occ
- Occupancy rate
- f
- Platform fee + STR management fee
- c
- Your cleaning cost per turnover
- m
- Long-term management fee
Worked examples
Managed Airbnb at $200/night vs $2,400 lease
At 65% occupancy the STR is booked 237.25 nights across about 79 stays, grossing $55,358. After 23% in platform and management fees, cleaning, utilities, extras and $24,000 of shared costs, it clears about $3,108 versus $1,171 for the lease. The $1,937 advantage takes 93 months to repay $15,000 of furnishing, and STR only wins above about 61.5% occupancy.
Self-managed STR in a softer market
At $150 a night and 55% occupancy, the STR grosses $34,128 and nets about $1,040 after costs, while a self-managed $2,100 lease nets $2,592. The STR would need about 57.9% occupancy just to match the lease, so the long-term rental wins here.
Frequently asked questions
Is Airbnb more profitable than long-term renting?+
Often in gross revenue, but not always in profit. Short-term rentals carry cleaning, platform fees, higher management fees, utilities, furnishing and more vacancy risk. The answer depends on occupancy, nightly rate and local rules.
What occupancy rate do I need for Airbnb to beat a lease?+
It is the break-even occupancy this calculator shows: the occupancy where STR profit equals long-term profit. A comfortable margin between your market’s typical occupancy and that break-even point reduces risk.
How much do short-term rental managers charge?+
Full-service short-term rental managers commonly charge around 15%–30% of booking revenue, far more than the roughly 8%–10% typical for long-term property management, because they handle guests, cleaning and pricing.
Do short-term rentals need a permit?+
Many cities require a short-term rental license or registration, cap the number of nights, or ban non-owner-occupied STRs entirely. Check local ordinances and HOA rules before buying or converting a property.
Are Airbnb taxes different from long-term rental taxes?+
They can be. Many places charge occupancy or lodging taxes on short stays, often collected by the platform. In the US, the average stay length and services provided can also change how the income is treated for tax purposes.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.