Real Estate & Rental Yield•Occupancy Breakeven Math
Airbnb vs. Long-Term Rental Income Calculator
Compare real net profits between short-term Airbnb hosting and traditional 12-month tenant leasing using our privacy-first airbnb vs long term rental calculator.
Airbnb Revenue Winner
Airbnb outperforms by $13,008 / year!
At 65.0% occupancy ($220/night), Airbnb generates $1,204/mo net cash flow profit vs $120/mo for long-term rental, a 1,003% increase.
LTR Net Cash Flow$120 / mo
Gross Rent: $2,400 / mo
Airbnb Net Cash Flow$1,204 / mo
Gross Revenue: $4,356 / mo
Breakeven Occupancy47.2%
Min Booked Nights: 14.4 nights / mo
Monthly Revenue & Expense Accounting
Full line-item comparison of gross income, platform fees, property management, utilities, and net cash flow after mortgage PITI.
| Financial Line Item | Long-Term Rental (LTR) | Airbnb (STR @ 65%) | Difference |
|---|---|---|---|
| Gross Monthly Revenue | $2,400 | $4,356 | +$1,956 |
| Vacancy Reserve | -$120 (5%) | Built into Occupancy | - |
| Host Platform Fees (3%) | $0 | -$131 | -$131 |
| Management / Co-Hosting Fee | -$240 (10%) | -$653 (15%) | -$413 |
| Host Paid Utilities (Wi-Fi, Power) | $0 (Tenant Pays) | -$350 | -$350 |
| CapEx & Turnover Reserve (5%) | -$120 | -$218 | -$98 |
| Net Monthly Revenue (Before Mortgage) | $1,920 | $3,004 | +$1,084 |
| Less: Monthly Mortgage PITI | -$1,800 | -$1,800 | $0 |
| Net Monthly Cash Flow Profit | +$120 / mo | +$1,204 / mo | +$1,084 / mo |
Deep-Dive Guide
Read GuideAirbnb vs. Long-Term Rental: Which Makes More Money?
Compare real net operating expenses, host platform fees, breakeven occupancy math, and local zoning risks.
Frequently Asked Questions
Fact-checked guidance grounded in STR operating margin math and breakeven occupancy formulas.
Is an Airbnb or a long-term rental more profitable?▾
Airbnb short-term rentals typically generate higher gross revenue (often 2× to 3× long-term rent) in popular tourist markets. However, short-term rentals also incur higher operating costs (3% platform fees, 15%–25% management fees, host-paid utilities, cleaning, and furniture setup). Comparing net cash flow after operating expenses reveals your true winner.
How do I calculate breakeven occupancy for an Airbnb?▾
Breakeven occupancy is the minimum monthly occupancy percentage required for short-term rental net revenue to equal long-term rental net cash flow. It is calculated as: (Long-Term Net Cash Flow + Fixed STR Operating Expenses) / (Gross Monthly STR Revenue at 100% Occupancy).
What expenses do long-term landlords avoid that Airbnb hosts must pay?▾
Long-term landlords avoid host platform commission fees (3%), short-term co-hosting management fees (15%–25% vs 8%–10% LTR), guest utility bills (Wi-Fi, electric, water), initial furniture furnishing costs, and constant guest turnover cleaning expenses.
What local laws affect short-term rental profitability?▾
Many cities enforce short-term rental bans, primary residence requirements, 30-day minimum stay limits, local municipal permit caps, and mandatory Transient Occupancy Tax (TOT) collection. Always verify local municipal zoning and HOA covenants before hosting.
Market Assumptions & Regulations:
- Occupancy Calculation: Monthly STR revenue is modeled as
Nightly Rate × 30.4167 days × Occupancy %. - Local Zoning & TOT Taxes: Short-term rentals are subject to local municipal permits, HOA rules, and Transient Occupancy Tax (TOT). Ensure your property is legally zoned for STR hosting.
- Active vs. Passive Management: Airbnb hosting requires guest messaging, cleaning coordination, and furniture setup. Long-term leasing offers passive income with less hands-on effort.