Calculators

Airbnb Calculator

Furnishing a short-term rental for that books of nights at , with -night stays, a cleaning fee against to clean, in platform fees, for a manager and a month in rent, utilities and supplies, makes $880 a month and pays back the start-up cost in 2 years 5 months. Over years, with back when you sell, it returns 111%, or 40.5% a year. At hours a week of your own time, you earn $14 an hour.

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How much can you make on Airbnb?

A short-term rental earns money night by night, and every booking carries its own costs: cleaning, platform fees and sometimes a manager's cut. The example spends $25,000 to furnish and set up a place that costs $3,000 a month in rent, utilities and supplies. It books 65% of nights at $200, in 3-night stays with a $100 cleaning fee that costs $90 to do. That brings in $4,611 a month. After a 3% platform fee and cleaning, it keeps $880 a month and pays back the setup in 2 years 5 months.

Occupancy is the number that makes or breaks a rental. The example covers its costs at about 16 nights a month, or 50% occupancy. At 50%, it loses $16 a month. At 75%, it keeps $1,476. Each extra night booked adds $196 to profit. Before you commit, look at booking calendars for similar listings nearby, and use a lower occupancy for your first year while reviews build.

Fees add up faster than most hosts expect. A full-service manager taking 20% of bookings turns the example's $880 profit into a loss of $43 a month. Dropping the cleaning fee and paying for cleaning yourself cuts profit to $241. Rate is the strongest lever: at $250 a night instead of $200, the place keeps $1,838 a month and pays back in 1 year 2 months.

Use it for a place you own or one you rent and sublet, often called rental arbitrage. For a place you own, put the mortgage payment, taxes, insurance and HOA dues in the monthly costs, and enter what you spent on furniture and setup as the start-up cost. For the full return on buying the property itself, including the loan and a future sale, use our real estate ROI calculator with the monthly profit as rent.

Frequently Asked Questions

How do I calculate Airbnb profit?

Multiply the nights booked by the nightly rate, add cleaning fees, then subtract platform fees, cleaning costs, a manager's share and the monthly costs of the home. In the example, 19.8 nights at $200 plus 6.6 cleaning fees of $100 bring in $4,611. Platform fees, cleaning and $3,000 of fixed costs leave $880.

What is a good occupancy rate for an Airbnb?

Many markets average 50% to 70%, with big swings by season. The example uses 65%. What counts is your break-even occupancy, which is about 50% in the example. A rental that needs 80% just to break even is risky, because one slow season wipes out the year.

How much does Airbnb take from hosts?

Under Airbnb's split-fee model, hosts usually pay about 3% and guests pay a separate service fee. Under the host-only fee, often required for professional hosts and some regions, hosts pay about 15% and guests pay none. VRBO charges hosts a similar share. Check your listing settings and enter your actual rate.

Is Airbnb more profitable than a long-term rental?

Often, it brings in more revenue, but it also costs more to run. Furniture, cleaning, utilities, supplies and your time all add up. Compare the monthly profit here with the rent a long-term tenant would pay minus your costs. If they're close, the long-term rental is usually less work and less risk.

What is rental arbitrage?

Rental arbitrage means renting a home on a long lease and listing it as a short-term rental. You need the landlord's written permission and a city that allows it. Enter your rent and utilities as the monthly costs and your furniture and setup as the start-up cost. The example works this way.

How much does it cost to furnish an Airbnb?

Many hosts spend $10,000 to $30,000 on a one or two-bedroom unit, counting furniture, linens, kitchen gear, decor and photos. Larger homes cost more. The example uses $25,000. Quality photos and comfortable beds often pay for themselves in better rates and reviews.

Should I use an Airbnb property manager?

Full-service managers usually charge 15% to 30% of bookings, and co-hosts often 10% to 20%. They save your time, but they come straight out of a thin margin. In the example, a 20% manager turns an $880 monthly profit into a $43 loss. Run it with your manager's fee before you sign.

How do cleaning fees affect Airbnb profit?

Cleaning fees cover each turnover, so they matter more for short stays. In the example, the $100 fee nearly covers the $90 cleaning. Without the fee, profit falls from $880 to $241 a month. Longer minimum stays mean fewer cleanings per night booked.

Are Airbnbs legal everywhere?

No. Many cities limit short-term rentals with permits, caps on nights, owner-occupancy rules or outright bans, and many HOAs and leases forbid them. Some cities also charge occupancy taxes. Check local rules before you buy or furnish anything, because a ban can turn a rental into a loss overnight.

How long does it take an Airbnb to pay for itself?

Divide the start-up cost by the monthly profit. The example's $25,000 setup and $880 a month take 29 months. At $250 a night, it takes 14 months. If payback takes longer than your lease or your city's permit, the plan is too risky.

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