Run a short-term rental purchase the way a lender would: mortgage, every operating cost, then cash flow, cap rate, cash-on-cash return and the occupancy you need just to break even.
Purchase & financing
$
%
%
yrs
$
$
Furniture, linens, kitchen, photos
Revenue
$
%
nights
$
Operating expenses
$
%
$
$
$
$
$
$
% of revenue
The deal
Cash flow after mortgage$1 / mo
Cash-on-cash return0.0%
Cap rate6.1%
Break-even occupancy62.0%
Cash invested$127,000
Gross revenue (226 nights)
$59,808
Platform fees
−$9,270
Cleaning
−$6,142
Fixed operating costs
−$13,200
Maintenance reserve
−$3,588
Net operating income
$27,607
Mortgage ($2,299/mo on $360,000)
−$27,590
Annual cash flow
$17
Break-even occupancy: the number that tells you how much risk you're taking
Your mortgage and fixed costs arrive every month ($40,790 a year here). Each booked night contributes about $180 after fees, cleaning, management and the maintenance reserve. Drag occupancy to see where the deal flips from losing to making money.
break-even 62%
At 62% the property makes $17 a year. A comfortable deal has break-even occupancy well below what comparable listings actually achieve in a slow year, not an average one.
Get a second opinion on these numbers
An AI reviewer reads the scenario you have entered above and points out optimistic assumptions and the levers that matter most. It only sees these numbers, never anything personal. It is not tax or legal advice.
Reading the results
Net operating income (NOI)
Revenue minus every operating cost, before the mortgage. It's what the property earns as a business, and it's the figure lenders who offer DSCR loans look at: they typically want NOI to cover the annual mortgage payment 1.0 to 1.25 times.
Cap rate
NOI ÷ purchase price. It lets you compare properties regardless of how they're financed. Short-term rentals often show higher cap rates than long-term rentals in the same area because gross revenue is higher, but they also carry more cost and more risk.
Cash-on-cash return
Annual cash flow after the mortgage ÷ the cash you actually put in: down payment, closing costs and furnishing. This is the return on your money, and the fairest comparison with alternatives like an index fund or paying down debt.
What this calculator leaves out
Appreciation and principal paydown. Both build wealth but not cash flow; the results here are deliberately cash-only.
Income tax. Depreciation often shelters rental profit on paper. Use the Airbnb tax calculator for a rough federal estimate, and a tax professional for the real thing.
Ramp-up. New listings usually take a few months and a handful of reviews to reach market occupancy. Budget cash for a slow first season.
Questions hosts ask
What is a good ROI for an Airbnb?
Investors usually judge a short-term rental on cash-on-cash return: annual cash flow divided by the cash you put in (down payment, closing costs, furnishing). Many target 8–12% or more, higher than a long-term rental, to pay for the extra work, vacancy risk and regulatory risk. What counts as "good" depends on your alternatives and how much appreciation you expect.
What is the difference between cap rate and cash-on-cash return?
Cap rate is net operating income (revenue minus operating costs, before the mortgage) divided by the purchase price. It describes the property regardless of financing. Cash-on-cash return uses cash flow after mortgage payments, divided by the cash you invested, so it reflects your actual deal and leverage.
What expenses should I include?
Platform fees, cleaning, utilities and internet, supplies and restocking, short-term rental insurance, property tax, HOA dues, permits and licences, software (pricing tools, channel managers), repairs and maintenance, and a reserve for replacing furniture and linens. A common rule of thumb is to set aside 5–10% of revenue for maintenance and capital expenses.
What is break-even occupancy?
The share of available nights you need to book to cover every cost, including the mortgage. Below it you lose money each month; above it you make money. The lower your break-even occupancy, the safer the deal is in a slow year.