Airbnb vs. Long-Term Rental Calculator
STRs gross 1.5–3x more than long-term rentals — but lose most of that to higher expenses and management. This calculator does the apples-to-apples comparison so you can see which strategy actually wins on your specific property.
Short-Term Rental (Airbnb)
STR expenses run higher than LTR — utilities, supplies, cleaning, turnover, higher capex.
STR average is ~50–70% depending on market.
Cleaning, supplies, utilities, internet, capex.
STR managers typically charge 18–25%. Self-managed = 0%.
Long-Term Rental
Includes 8–10% property management.
Annual Comparison
net annual
net annual
STR earns $3,328 more per year
STR vs. LTR — what changes
Same property; different operating model. The income line moves up dramatically with STR. The expense line moves up too. The question is how much net is left after the smoke clears.
The formulas
When STR wins
- Tourism markets (beach towns, ski resorts, national park gateways).
- Major event cities (sports, conferences, festivals).
- Business-travel cities with weekday demand.
- Markets with limited hotel supply.
When LTR wins
- Quiet residential neighborhoods with low Airbnb demand.
- Cities that restrict or ban non-owner-occupied STRs.
- HOA-restricted properties (most condos forbid STRs).
- Investors who don’t want to manage a hospitality business.
Frequently asked questions
Should I run my property as Airbnb or long-term rental?
In tourist markets and major metros with business travel, Airbnb often outperforms LTR by 1.5–3x. In quiet residential markets, LTR wins by avoiding higher expenses and management fees. The honest answer depends on local nightly rates, occupancy, and regulations.
What occupancy should I use?
Check AirDNA, Rabbu, or comparable Airbnb listings in your market. National average is ~50–55%. Strong tourist markets run 65–75%. New listings without reviews typically average 40–50% for the first 6 months. Be conservative.
Why are STR expenses so much higher?
STR includes utilities (you pay water/gas/electric/internet), supplies (toiletries, paper goods, coffee), capex (furniture wears out fast), cleaning between stays (often 8–12 turnovers/month), and higher insurance. Total STR expense ratio runs 30–40% of revenue, vs. 25–35% for LTR before management.
What about STR management fees?
Full-service STR property managers charge 18–25% of revenue (vs. 8–10% for LTR). They handle bookings, communication, cleaning coordination, restocking, maintenance. Self-managing saves the fee but adds 5–15 hours/week of work — significant during peak season.
Are STRs riskier than LTRs?
More volatile income, more sensitive to economic downturns, and increasingly subject to regulation (many cities now restrict or ban non-owner-occupied STRs). LTR income is steadier; STR income is higher but with a wider range. Diversifying across both is one approach.
How do regulations affect this?
Many cities — including Boston, NYC, Honolulu, Santa Monica, parts of Denver and Nashville — restrict non-owner-occupied STRs or cap nightly counts. Always check city ordinances and HOA rules before underwriting an STR. Regulation risk is real and can flip a profitable STR into a money-losing LTR overnight.
Should I include mortgage in the comparison?
This calculator compares net operating income (before debt service) to keep the comparison apples-to-apples. The mortgage is the same in both scenarios. To get to net cash flow after debt, subtract annual P&I from each side.
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