Airbnb Profit Estimator
Estimate your short-term rental profits with detailed expense breakdown, occupancy modeling, and ROI analysis. Perfect for current and aspiring Airbnb hosts.
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Revenue Details
What you charge per night
20 of 30 nights booked
Average guest booking length
Cleaning cost between guests
Monthly Revenue
$2,968
19.8 nights × $150
Yearly Revenue
$35,615
$2,968 × 12
Monthly Expenses
Annual fee (divided by 12 for monthly)
Typically 3% for host-only
0% if self-managed
HOA, Lawn Care, etc.
Utilities
Insurance Coverage Comparison
Your regular monthly premium
Updated premium with STR coverage
Additional Airbnb Coverage Cost
+$50/mo · +$600/yr
Insights
Expense Breakdown
| Expense | Monthly | Yearly | % |
|---|---|---|---|
Mortgage/Rent | $1,500 | $18,000 | 57% |
Utilities | $260 | $3,120 | 10% |
Cleaning | $495 | $5,936 | 19% |
Platform Fee | $89 | $1,068 | 3% |
Maintenance | $150 | $1,800 | 6% |
Home Insurance | $100 | $1,200 | 4% |
Airbnb Coverage | $50 | $600 | 2% |
| Total | $2,644 | $31,724 | 100% |
Revenue vs Expenses
Profit
$324/mo
$3,891/yr
Expenses
$2,644/mo
$31,724/yr
Profit Estimate
ThinMonthly
$324
net profit
Yearly
$3,891
net profit
| Monthly | Yearly | |
|---|---|---|
| Gross Revenue | $2,968 | $35,615 |
| Total Expenses | −$2,644 | −$31,724 |
| Net Profit | $324 | $3,891 |
| Profit Margin | 10.9% | |
Return on Investment
Total investment. Set to 0 if renting.
Annual Cash-on-Cash Return
—
Enter purchase price to calculate
Monthly
$324
Yearly
$3,891
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How to Use the Airbnb Profit Estimator
This calculator helps you estimate the monthly and annual profit from a short-term rental on Airbnb, Vrbo, or similar platforms. Enter your nightly rate and expected occupancy rate to see gross revenue, then add all your expenses to see the true bottom line. The calculator accounts for cleaning turnovers, platform fees, property management costs, and all recurring monthly expenses.
Setting your nightly rate: Research comparable listings in your area using AirDNA, Mashvisor, or simply browsing Airbnb. Consider factors like property size, location, amenities, and seasonality. Many hosts use dynamic pricing tools that adjust rates based on demand, so your actual average rate may differ from your listed rate.
Understanding occupancy: Occupancy rate is the percentage of available nights that are booked. A 65% occupancy rate means about 20 nights per month are booked. New listings typically see lower occupancy (30-50%) that grows as you accumulate reviews. Markets with strong tourism can sustain 70-90% occupancy during peak season.
Cleaning economics: The average stay length directly impacts your cleaning costs. A property with 3-night average stays will have about 10 turnovers per month at 100% occupancy. One-night stays dramatically increase cleaning costs and wear. Consider setting minimum stay requirements to optimize cleaning expenses versus revenue.
Business license & permits: Many cities require a business license before you can legally operate a short-term rental. Fees vary by location — for example, Algona, WA charges around $250 per year. Enter your annual fee and the calculator will amortize it to a monthly expense automatically. Check with your local city clerk to find the exact cost for your area.
Insurance considerations: Standard homeowners insurance usually does not cover Airbnb hosting activity. You will need to upgrade to a policy with short-term rental coverage, which can cost $50-$300+ more per month. This calculator separates your base home insurance from the additional Airbnb coverage cost so you can clearly see how much extra insurance eats into your profits.
Cash-on-cash return: If you own the property, optionally enter the purchase price to calculate your cash-on-cash return. This tells you the annual percentage return on your total investment, making it easy to compare against stocks, bonds, or other real estate strategies.
Frequently Asked Questions
What is a good occupancy rate for Airbnb?
A good Airbnb occupancy rate varies by market, but 50-70% is typical for most areas. Popular tourist destinations can see 70-90% during peak seasons. New listings often start around 30-40% and grow as reviews accumulate. AirDNA and similar tools can provide market-specific benchmarks for your area.
What are Airbnb host fees?
Airbnb typically charges hosts a 3% service fee on each booking under the split-fee model. Under the simplified pricing model (host-only fee), hosts pay 14-16% and guests pay nothing. Most hosts use the split-fee model. The calculator defaults to 3% but you can adjust this based on your pricing model.
How do I estimate cleaning costs for Airbnb?
Cleaning costs depend on property size and your market. Studios and 1-bedrooms typically cost $50-$100 per turnover. 2-3 bedrooms run $75-$150. Larger properties can be $150-$300+. The cost per turnover increases with shorter stays since you clean more frequently. Many hosts pass some or all cleaning costs to guests via Airbnb's cleaning fee field.
Should I hire a property manager for my Airbnb?
Property managers typically charge 10-25% of gross revenue. They handle guest communication, check-ins, cleaning coordination, and maintenance. Self-managing saves money but requires 5-15 hours per week depending on bookings. It makes financial sense for properties earning at least $3,000-$4,000/month in gross revenue or if you have multiple listings.
What expenses do Airbnb hosts often forget?
Commonly overlooked expenses include: business license fees required by your city (typically $50-$500/year), the insurance premium increase when switching from standard homeowners to short-term rental coverage, higher utility bills (guests use more water, electricity, and heat), consumables (toiletries, coffee, paper products), wear and tear replacement (linens, towels, dishes), seasonal maintenance, HOA restrictions or fees, local short-term rental permits and taxes, photography for listings, and Wi-Fi upgrades.
Do I need a business license to run an Airbnb?
Most cities and counties require a business license or short-term rental permit before you can legally operate an Airbnb. Fees vary widely — from $50 to $500+ per year depending on your location. Some cities like Algona, WA charge around $250 annually. Check with your local city clerk or business licensing office. Operating without a license can result in fines or being shut down, so factor this annual cost into your profitability analysis.
How much more does insurance cost for Airbnb properties?
Standard homeowners insurance typically does not cover short-term rental activity. You'll need to upgrade to a policy that includes STR coverage, which can cost $50-$300+ more per month depending on your property value, location, and coverage level. Some hosts use specialized STR insurance providers like Proper Insurance or CBIZ. This calculator lets you enter both your base insurance and the additional Airbnb coverage cost so you can see the true impact on your bottom line.
How is cash-on-cash return calculated?
Cash-on-cash return is your annual net profit divided by the total cash you invested (purchase price, closing costs, furnishing, etc.). For example, if you invested $80,000 total and earn $8,000 net per year, your cash-on-cash return is 10%. This metric helps compare Airbnb investments to other investment opportunities.