Free Airbnb & Short-Term Rental Calculator

Estimate annual revenue, cash flow, cap rate, and cash-on-cash return on any short-term rental before you buy.

Quick Answer: Airbnb gross revenue = 365 × occupancy rate × average nightly rate. Subtract operating expenses (30–50% of gross for STR) to get net operating income, then divide by purchase price for cap rate or by cash invested for cash-on-cash return.

Airbnb Income & Cash Flow Calculator

Average Nightly Rate — ADR ($)

Occupancy Rate (%)

Underwrite at 60–70%; stress-test at 55–60%

Monthly Operating Expenses ($)

Mortgage, utilities, insurance, software, management

Cleaning Fee per Stay ($)

Average Nights per Stay

Purchase Price ($) — optional

For cap rate

Cash Invested ($) — optional

Down payment + closing + furnishing, for cash-on-cash return

How to Underwrite a Short-Term Rental

Short-term rentals can out-earn long-term rentals 1.5–3x in the right market, but expenses are higher and revenue is seasonal. The key is conservative occupancy and a full expense picture. Compare the result against our rental property calculator and cap rate calculator to decide between STR and long-term.

The Revenue Formula

Gross Revenue = 365 × Occupancy % × Nightly Rate

NOI = Gross Revenue − Operating Expenses

Worked Example

A 3-bed cabin rents for $180/night at 65% occupancy, with $2,000/month in operating costs:

Gross revenue = 365 × 0.65 × $180 = $42,705
Operating expenses = $2,000 × 12 = $24,000 (plus cleaning turnover labor)
NOI ≈ $42,705 − $24,000 = $18,705/year (~$1,559/month)
On a $400,000 purchase, cap rate ≈ $18,705 ÷ $400,000 = 4.68%

Underwriting Rules of Thumb

Occupancy: Underwrite at 60–70%, confirm the deal survives at 55–60%.
Expenses: Budget 30–50% of gross for STR (vs 15–25% for long-term).
Regulation: Always confirm local short-term rental ordinances before buying.

Frequently Asked Questions

How do you calculate Airbnb income?

Airbnb gross revenue = 365 × occupancy rate × average nightly rate (ADR). For example, at $180/night and 65% occupancy: 365 × 0.65 × $180 = $42,705 per year. Subtract operating expenses and cleaning turnover labor to get net operating income (NOI).

What is a good occupancy rate for an Airbnb?

Most short-term rental investors target 60–75% occupancy as a baseline. A safer underwriting practice is to confirm the deal still cash flows at 55–60% occupancy so it doesn't depend on peak-season performance. Actual occupancy varies widely by market, seasonality, and listing quality.

How much more does an Airbnb make than a long-term rental?

In the right market, a short-term rental can gross 1.5–3x what the same property earns as a long-term rental. However, expenses are higher too — typically 30–50% of gross revenue for STR versus 15–25% for long-term — so always compare on net cash flow, not gross.

What expenses should I include for a short-term rental?

Include mortgage, property taxes, insurance (STR-specific), utilities, internet, cleaning and turnover labor, supplies and restocking, platform/management fees, software, permits, and a maintenance/vacancy reserve. STR expenses run higher than long-term rentals because of cleaning, furnishing, and higher turnover.

How do I calculate cap rate on an Airbnb?

Cap rate = Annual NOI ÷ Purchase Price × 100, where NOI is gross short-term rental revenue minus all operating expenses (excluding mortgage principal and interest). It lets you compare an STR to long-term rentals on equal footing.

Is Airbnb still a good investment in 2026?

It depends on the market and regulation. Markets with tightening short-term rental rules and rising supply have compressed returns, while regulation-friendly tourist and event markets remain strong. Always underwrite conservatively, check local STR ordinances, and stress-test at 55–60% occupancy before buying.