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Rental arbitrage calculator

Leasing a place to host on Airbnb? See the monthly profit after rent, fees and cleaning, the occupancy you need to break even, and how long the setup cash takes to come back.

The lease

Furniture, linens, kitchen, lock, photos

Bookings

Monthly running costs

Does the unit pay?

Monthly profit after rent and every cost$432
Break-even occupancy54.8%
Payback on setup25.2 mo
Cash to start$12,800
Annual return on cash40%
Bookings (19.8 nights, 6.6 stays)$3,886
Platform fee−$602
Cleaner−$527
Rent−$1,900
Other running costs−$425
Monthly profit$432

Nightly revenue is 1.72× the rent. Hosts often treat about 2× as a minimum before an arbitrage unit is worth the risk; below that, a slow month wipes out the profit.

Why arbitrage is a bet on your slow months

An owner with a paid-off home can wait out a quiet January. You can't: rent of $1,900 is due every month. Each booked night here nets about $140, so you need 16.7 booked nights a month just to cover rent and running costs. Model your year with the seasonal heatmap, entering the lease rent as the monthly cost, to see whether your low season clears that line.

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.

Running an arbitrage deal properly

  1. Check the ordinance first. Many cities only allow STRs in a primary residence or require an owner-held permit. If a non-owner can't get a permit, the deal is dead.
  2. Get written landlord consent in the lease, covering short-term subletting, insurance and who pays for extra wear. Some landlords ask for a revenue share or higher rent.
  3. Price from comparables, not hope. Use the median rate and occupancy of similar listings nearby, by season.
  4. Insure it. Ordinary renters insurance usually excludes commercial hosting. Airbnb's AirCover for Hosts isn't a substitute for your own liability policy.
  5. Plan an exit. If rules change or bookings don't come, can you switch to a mid-term rental or end the lease? If you bring in help, the co-host fee calculator shows what it costs.

Questions hosts ask

What is rental arbitrage?

Renting a property on a normal lease and re-letting it as a short-term or mid-term rental on Airbnb or Vrbo, with the landlord's written permission. Your profit is the gap between booking income and the rent plus running costs.

Is Airbnb arbitrage legal?

It can be, but only where the city allows short-term rentals by non-owners and the lease explicitly permits subletting for short stays. Many cities restrict STRs to a primary residence or require a permit the tenant may not be able to get. Check the local ordinance and get landlord consent in writing before you sign.

How much money do I need to start rental arbitrage?

Typically the security deposit and first month's rent, plus furnishing and setup (furniture, linens, kitchen, photography, smart lock), plus a cash cushion for the first slow months. The calculator adds these up as cash to start and shows how many months of profit it takes to pay them back.

What occupancy do I need to break even on an arbitrage unit?

Break-even occupancy is rent plus fixed costs divided by what one booked night nets after platform fee and cleaning, times the nights in a month. The calculator shows it directly. Because you pay rent every month whether or not you book, aim for a break-even well below what comparable listings achieve in their slowest months.

Is rental arbitrage still worth it?

Margins are thinner than they were: Airbnb's host-only fee of about 15.5% is now standard, more cities limit non-owner STRs, and supply has grown in many markets. It can still work where demand is strong, rules allow it and rent is low relative to nightly rates. Run the numbers at a pessimistic occupancy before committing.

Run the other numbers