Short-Term Rental Calculator

How this calculator works

Short-term rental results depend almost entirely on nightly rate and occupancy, which vary by property, season and management. This calculator does not supply local revenue figures; enter your own estimates from comparable listings or a data provider.

Short-term rentals may need a permit or registration, and many HOA deed restrictions prohibit them. Confirm the rules for the address before you buy.

Revenue = nights booked × nightly rate + cleaning fees, by month.
Costs include platform and management fees, cleaning per stay, hotel occupancy tax you remit, fixed costs and capital reserves.

Worked example

The nightly rate, occupancy and cleaning figures are hypothetical inputs to show the math, not local market data. These are the numbers the calculator above starts with after these inputs are entered.

Inputs

Average nightly rate: $180
Occupancy: 55%
Average stay (nights): 3
Cleaning fee charged per stay: $120
Platform fees (% of revenue): 3%
Management (% of revenue): 0%
Your cleaning cost per stay: $90
Hotel occupancy taxes you remit (%): 0%
Utilities and internet per month: $350
Supplies per month: $100
HOA per month: $0
Property taxes per year: $6,000
Insurance per year (short-term rental policy): $3,000
Maintenance per year: $2,500
Capital reserves (% of revenue): 5%
Purchase price: $325,000
Down payment: $81,250 (25%)
Interest rate: 7.5%
Loan length: 30 years
Closing costs: $7,000
Furnishing and setup: $20,000

Results

Revenue: $44,165
NOI: $19,438
Monthly cash flow: -$269
Cash-on-cash: -3.0%

Common questions

Do I have to collect hotel occupancy tax in Texas?

Short-term rentals in Texas are generally subject to the state hotel occupancy tax, and many cities and counties add local taxes. Some platforms collect some of these for you. Check with the Texas Comptroller and the local taxing authority.

Can I run a short-term rental anywhere?

No. City ordinances and HOA restrictions can limit or prohibit them. Check before you buy.

Where do I get occupancy estimates?

From comparable listings' calendars, a data provider or a local manager. Be conservative.

Related calculators

Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.