A short-term vs long-term rental calculator compares annual net income from Airbnb-style vacation rentals against traditional 12-month leases, accounting for all the additional costs of each strategy.
Property Details
Short-Term Rental (STR)
Long-Term Rental (LTR)
How to Compare Short-Term vs Long-Term Rental Income
This short-term vs long-term rental calculator cuts through the hype around Airbnb income by accounting for all the real costs. Many investors are surprised to find that after platform fees, cleaning, utilities, and supplies, STR margins are thinner than expected.
Estimating STR Revenue Accurately
Use your occupancy rate times 365 days for annual nights booked. A $150/night property at 65% occupancy yields about 238 nights per year, or $35,700 gross. Check competing Airbnb listings in your area to calibrate nightly rates and occupancy realistically.
Don't Forget Cleaning Costs
At a 3-night average stay and 65% occupancy, you get about 79 turnovers per year. At $120 per cleaning, that is $9,480 annually in cleaning costs alone. This is the expense most new STR hosts dramatically underestimate.
When LTR Wins
Long-term rentals are lower maintenance, lower risk, and predictable. In markets with strong rental demand, strict STR regulations, or where you cannot manage frequent turnovers, LTR often provides better risk-adjusted returns with far less work.
FAQ
Is this comparison calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser.
How do I estimate STR occupancy rate?
A good starting occupancy rate for most markets is 50-70%. Urban centers and popular vacation destinations can hit 70-85%. Markets with strict regulations or high competition may be below 50%. Check AirDNA or Mashvisor for your specific market data.
What platform fees does Airbnb charge?
Airbnb charges hosts approximately 3% of the booking subtotal. VRBO charges hosts either 8% per booking or a flat $499/year subscription. Factor in 3-8% for cleaning fees recovery and expect 2-5% for credit card processing.
Is short-term rental more profitable than long-term?
It depends heavily on your market and management approach. STR often grosses 2-3x more than LTR in popular tourist markets, but expenses are much higher (cleaning, supplies, utilities, platform fees). Net income advantage of STR is typically 1.5-2x in good markets, but requires significantly more management time.
What expenses are higher for short-term rentals?
STR has much higher costs for: cleaning (often $75-200 per turnover), toiletries and supplies, utilities (you pay all), linens and towels, platform fees, and management if outsourced. These easily add up to 35-50% of gross revenue versus 20-30% for long-term rentals.
Are there legal restrictions on short-term rentals?
Yes, many cities have strict regulations including permit requirements, night limits, owner-occupancy requirements, and outright bans in certain zones. Always verify your local regulations before investing in a property specifically for STR. Nashville, NYC, Los Angeles, and San Francisco have particularly strict rules.