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Airbnb Profit Calculator

Airbnb income looks simple on the surface - nightly rate times occupancy. But the real number is net of Airbnb's platform fee, cleaning costs every turnover, supplies, elevated utilities, and any co-host or property management fee. This Airbnb profit calculator accounts for all of these expenses and shows your true monthly net income. Enter a long-term rental comparison figure to see whether short-term renting is actually more profitable than a traditional lease - because for many properties and locations, it is not.

Urban average: 55-75%

Typically 3% for hosts

Toiletries, linen, welcome kits

Typical co-host: 10-20% of revenue

What this property earns as a long-term rental

Enter your nightly rate and occupancy rate to calculate your Airbnb income.
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Short-term rental income depends heavily on local regulations, seasonality, platform algorithm changes, and competition. This calculator provides estimates only. Verify local STR licensing requirements and tax obligations before listing. This is not financial or legal advice.

How to use this tool

  1. 1Enter your nightly rate and expected occupancy rate as a percentage of nights booked (urban properties average 55-75%).
  2. 2Set the Airbnb host service fee - Airbnb charges hosts approximately 3% of the booking subtotal.
  3. 3Enter your cleaning fee per stay and average stay length in nights. Longer stays reduce cleaning frequency and cost.
  4. 4Add monthly supplies (toiletries, linens, welcome packs), extra utilities above your base bill, and any co-host or management fee as a percentage of revenue.
  5. 5Optionally enter what the property would earn as a long-term rental to see how much extra income short-term renting provides (or does not).

Formula used

Nights per month = 30 x (occupancy rate / 100). Stays per month = nights per month / average stay length. Gross revenue = nights per month x nightly rate. Platform fee = gross revenue x host fee %. Cleaning costs = stays per month x cleaning fee per stay. Co-host / management fee = gross revenue x management %. Total expenses = platform fee + cleaning costs + supplies + extra utilities + management fee. Monthly net income = gross revenue - total expenses.

Example

City apartment at 130/night, 65% occupancy, self-managed

Nightly rate: 130. Occupancy: 65% (19.5 nights/month). Gross revenue: 2,535. Platform fee: 3% = 76. Average stay: 3 nights, cleaning: 80/stay = 520. Supplies: 100/month. Extra utilities: 60. Management: 0%. Total expenses: 756. Monthly net: 1,779. Annual net: 21,348. Long-term rental equivalent: 1,500/month. Airbnb earns 279 more per month before accounting for the extra management effort.

Same apartment with a 15% co-host management fee

All inputs identical but management fee: 15% of 2,535 = 380. Total expenses: 1,136. Monthly net: 1,399. Annual: 16,788. Now Airbnb earns only 101/month more than long-term rental (1,500/month) while requiring significantly more logistics. For many hosts, this makes long-term renting more attractive.

Common use cases

  • Property owners deciding whether to list on Airbnb or sign a long-term lease
  • Investors evaluating a property purchase based on short-term rental income potential
  • Current Airbnb hosts checking whether their pricing covers all actual costs
  • Property managers quoting clients on expected net returns for a managed STR
  • Homeowners considering renting their home while travelling to offset costs

Common mistakes

  • Using a 100% occupancy rate to estimate income - no property is fully booked every night; build in at least 25-30% vacancy, more in seasonal markets.
  • Forgetting that the cleaning fee charged to guests often does not fully cover actual cleaning costs, especially for longer turnovers or larger properties.
  • Ignoring the time cost of self-management - guest messaging, check-in coordination, maintenance calls, and restocking can take 5-10 hours per week for a busy listing.
  • Not accounting for Airbnb algorithm changes and market saturation - new listings in your area, regulatory changes, or platform policy updates can significantly reduce occupancy.

Frequently asked questions

What is a good occupancy rate for an Airbnb?

Average Airbnb occupancy rates in urban markets typically range from 50-70%. Tourist destinations can hit 80-90% in peak season but may fall to 30-40% in the off-season. A stabilised urban listing in a desirable neighbourhood averaging 60-65% year-round is a realistic planning assumption.

What Airbnb host fee does the calculator use?

The default is 3%, which reflects Airbnb's standard host service fee structure for most hosts. Some markets and listing types may see slightly different rates. Airbnb charges the majority of the platform fee to guests (typically 14-16% of the booking subtotal), separate from the host fee.

Is Airbnb more profitable than long-term renting?

It depends on the property location, local STR regulations, your time investment, and management approach. In high-demand tourist or business travel markets, Airbnb can earn 2-3x a long-term rental income. In secondary markets with low tourism and strict STR regulations, long-term renting is often more reliable and less effort. Use the long-term comparison field in this calculator to see your specific difference.

Does this calculator include the mortgage payment?

No. This calculator focuses on the operational income from the Airbnb listing. To see net income after mortgage, add your monthly mortgage payment to the expenses section (use the extra utilities field for now, or subtract it manually from the net income result). The full picture including financing is best modelled in the Rental Property Profit Calculator.

Is my Airbnb income taxable?

In most countries, Airbnb income is taxable. Many jurisdictions also require a short-term rental licence or permit. Tax rules differ significantly by country and even by city. Consult a local tax adviser to understand your reporting obligations before listing.

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