Nightly Rate ($) Occupancy Rate (%) Average Nights per Booking Cleaning Fee per Booking ($) Platform Fees (%) Monthly Operating Costs ($) Property Management Fee (%) Calculate Profit Copy Result

How This Calculator Works

Short-term rentals can be lucrative, but income often fluctuates with seasonal demand and booking platforms’ commission structures. This calculator helps you predict typical monthly profit by combining nightly rates, average occupancy, fees, and routine expenses. Adjust the inputs to match your market conditions and property costs to see whether hosting is worth your effort.

The Profit Formula

The tool multiplies your nightly rate by the expected occupied nights each month. It assumes 30 days per month, so occupied nights equal the occupancy rate times 30. We then calculate how many guest stays occur by dividing occupied nights by the average nights per booking. Your total revenue includes both the nightly charges and cleaning fees collected from each stay.

We deduct platform fees and operating expenses to obtain net profit. Written in mathematical form:

Here is occupancy rate as a decimal, is the average stay length, and represents total revenue before deductions. The resulting profit margin is simply profit divided by gross revenue.

Example Monthly Breakdown

Metric	Amount
Occupied Nights	18
Bookings	6
Gross Revenue	$2,700
Net Profit	$1,600

In this example, a $150 nightly rate with 60% occupancy generates 18 booked nights. If guests typically stay three nights and you charge a $50 cleaning fee per booking, your gross revenue approaches $2,700. After platform fees and $500 in monthly costs, net profit sits around $1,600, leaving a healthy margin for the owner.

If you hire a property manager, their fee reduces that profit but can save you time and hassle. Enter a management percentage above to see the effect on your bottom line.

Maximizing Your Hosting ROI

Success in the short-term rental market comes from meticulous planning and top-notch guest experiences. Consider local regulations, competition, and special events that can raise or lower occupancy. Investing in professional photos and responsive communication often boosts bookings. This calculator helps you forecast monthly and annual profits so you can decide on optimal pricing and amenities.

Limitations

Real-world results may vary with unexpected expenses, last-minute cancellations, or fluctuating demand. Use this tool as a starting point to gauge potential profitability and refine your strategy as you accumulate hosting experience.