Please fill in at least the nightly rate (STR) and monthly rent (LTR) to compare.
The Occupancy Rate Nobody Wants to Admit to Themselves
Every investor who has ever considered short-term rental has a number in their head — some optimistic occupancy figure that makes the Airbnb income look great on paper. The problem is that number is usually wrong. Seasonality, platform algorithm changes, new supply entering the market, local regulations tightening — all of it chips away at occupancy in ways that a simple napkin calculation doesn't capture.
That's where this comparison calculator earns its value. It doesn't ask you to guess which strategy is better. It asks you to plug in your real numbers — and then it shows you the actual monthly net for both, side by side.
How to Use This Calculator for a Honest Comparison
The only way this tool gives you useful output is if you use realistic inputs. Optimistic occupancy plus low expense estimates produces a misleading result that favors short-term rental. Conservative, honest inputs produce a result you can actually make a decision from.
Filling In Each Field Correctly
- Enter your average nightly rate for the vacation rental. Use a realistic average across your full booking calendar — not just peak weekend rates.
- Enter occupied nights per month honestly. If you're in a seasonal market, use your off-peak average, not your summer peak. A full-year average is most useful here.
- Platform fees should include service charges from Airbnb or VRBO, which typically run 14–16% of booking revenue. Enter the monthly dollar amount.
- Cleaning costs are often the most underestimated expense in short-term rentals. Include every turnover — materials plus paid cleaner time or your own time at a fair hourly rate.
- Supplies and restocking covers toiletries, paper goods, replacement items, and the ongoing cost of keeping the unit guest-ready.
- For long-term rental, enter the monthly rent you'd realistically collect in your market — not the asking price you'd list, but what you'd likely get and keep.
- Vacancy allowance is the expected number of months per year the unit sits empty between tenants. The industry average is 0.5 to 1 month annually.
- Shared expenses — mortgage, insurance, property taxes, base utilities — go in the shared field and are subtracted from both scenarios equally.
The Formula Behind the Comparison
For the vacation rental side: gross revenue equals nightly rate multiplied by occupied nights. All STR-specific costs — platform fees, cleaning, supplies, management — are deducted, along with the shared expenses. For the long-term side: effective monthly rent is gross rent minus the monthly equivalent of your vacancy allowance. Management fees and maintenance are subtracted, along with shared expenses. Both sides arrive at a comparable monthly net figure.
Why the Shared Expenses Field Matters
Mortgage, insurance, and property tax don't change based on rental strategy. By entering those as a shared expense, the calculator gives you an apples-to-apples comparison — both strategies start from the same fixed cost base. Most people skip this when comparing strategies and end up with outputs that don't reflect real-world profitability.
Example: 2-bedroom property, suburban market, self-managed STR
STR: $175/night × 17 nights = $2,975 gross. Platform fees $446, cleaning $340, supplies $75, no management. Shared: $1,450. STR net: $664/month. LTR: $1,700/month rent, 0.5 months vacancy ($71/mo equivalent), $120 maintenance, no management. Shared: $1,450. LTR net: $59/month. In this example, the vacation rental wins — but the margin is heavily dependent on maintaining 17+ occupied nights per month consistently. Drop to 13 nights and long-term rental pulls ahead.
When the Calculator Changes How You Think About This Decision
Most people come in expecting to confirm a preference. What actually happens is they discover that the margin between strategies is smaller than they thought — or that occupancy is the single variable that swings the decision entirely.
The Self-Management Problem
STR returns look much better when you exclude the value of your own time. Guest communication, check-in logistics, coordinating cleaners, handling complaints — that's easily 5–10 hours per month for an active listing. If you price your time at even a modest hourly rate and add it to STR expenses, the comparison shifts meaningfully. According to the Consumer Financial Protection Bureau, landlords who account for full time costs often find long-term rental generates more reliable net income per hour of effort — especially when management fees are comparable across both strategies.
What Changes When a Property Manager Enters the Picture
STR property managers typically charge 20–30% of gross revenue. That's not 20–30% of net — it's off the top of gross. On a $3,000/month revenue property, that's $600–$900 gone before any other expense. LTR managers charge 8–12% of rent, which on a $1,800 rent property is $144–$216. That difference alone can close a gap that initially looked large in favor of the vacation rental. Run the calculator again with management fees included and see if the verdict changes. Many property owners use our Airbnb fee and payout calculator alongside this tool to get the STR fee math exactly right before entering it here.
Three Numbers That Will Change Your Result More Than Any Other
Occupancy Rate
This is the dominant variable on the STR side. Run the calculator three times: once with your optimistic occupancy, once with your realistic average, and once with your worst-case low season. That range tells you far more than any single scenario. Platforms like Airbnb can and do de-prioritize listings based on response time, review scores, and pricing — none of which are guaranteed to stay favorable.
Cleaning Cost Per Turnover
On a property with 18 occupied nights per month, you might have 6–8 separate guest stays. At $60–$100 per professional cleaning, that's $360–$800 per month in cleaning alone. Most first-time STR hosts underestimate this by 40–50%. Put the real number in. It's the second biggest swing factor after occupancy.
Vacancy Allowance on the LTR Side
Don't enter zero here. Even the best landlords in strong markets face at least one month of vacancy every 18–24 months. Using a 0.5 months per year figure is conservative and realistic. If your area has a softening rental market or above-average tenant turnover, use 1 to 1.5 months. This field significantly affects LTR net and is almost always underweighted.
Questions Property Owners Ask When Comparing These Strategies
What occupancy rate does a vacation rental need to beat long-term rental?
It depends entirely on the rate spread and expense structure, but in most suburban and mid-tier markets, STR needs 60–70% monthly occupancy (roughly 18–21 nights) to outperform a comparable long-term rent on a net basis. Below that threshold — especially when management and cleaning costs are realistic — long-term rental frequently wins on pure net income. Run your specific numbers in the calculator to find your exact crossover point.
Are there tax differences between vacation rental and long-term rental?
Yes, and they're significant. Short-term rentals rented for fewer than 15 days per year have different IRS treatment than STRs rented more. Long-term rentals follow standard Schedule E treatment. Active participation rules, depreciation deductions, and local lodging tax obligations all differ between the strategies. This calculator focuses on gross-to-net cash flow — consult a tax professional for your specific tax picture before making a final decision.
Does this calculator account for property appreciation?
No. The calculator compares monthly operating income only. Property appreciation is independent of rental strategy in most markets and should be analyzed separately as part of a full investment underwriting. Some markets do show higher short-term appreciation in areas with STR-friendly zoning — but that's a separate variable that this cash flow tool doesn't model.
What if I want to use the property part-time myself?
Personal use nights reduce your available STR inventory. Enter only the nights you intend to rent — not total calendar nights. Personal use also affects tax deduction eligibility under IRS rules regarding mixed-use properties. If you plan to use the property more than 14 days per year or more than 10% of rented days, the tax treatment changes meaningfully.
Are platform fees included automatically?
No — you enter them manually. Platform fees vary by platform, listing type, and even individual contract terms. Airbnb's host service fee is typically around 3% of booking subtotal, but guest fees add another 14–15% which effectively increases your pricing pressure to stay competitive. Enter your net effective fee impact on the host side as a monthly dollar amount. Our Airbnb pricing and nightly rate calculator can help you model the right rate to enter here.
Can I use this for a property I'm considering buying?
Yes. Use projected market rents for the LTR side and conservative STR occupancy data for your target market. Sites like AirDNA publish occupancy and ADR benchmarks by ZIP code for short-term rental markets — use those figures rather than best-case assumptions. The calculator works equally well for underwriting a prospective acquisition as for evaluating a property you already own.
How do I factor in HOA restrictions on short-term rentals?
If your HOA prohibits short-term rentals, the STR column is irrelevant regardless of what the numbers show. Check your CC&Rs before running any analysis. Many municipalities have also added STR licensing requirements, occupancy caps, and neighbor notification rules that add cost and compliance overhead not captured in this calculator.
What should I do after I see the calculator result?
If LTR wins clearly: run a full rental market analysis for your area and consult with a property manager on a management agreement. If STR wins clearly: verify local STR regulations, get an accurate market occupancy estimate from AirDNA or a local host group, and build a realistic expense model before committing. If the margin is tight — less than $100–$150 per month — the decision should be based on lifestyle factors, time commitment, and risk tolerance rather than the monthly net difference alone. Our Airbnb investment ROI calculator can help you extend this analysis to a full multi-year return comparison.