Short-term rental via Airbnb can generate significantly higher revenue than traditional rentals, but platform fees, operating costs and taxes make calculating real profitability more complex than it appears. A simulator lets you factor everything in at a glance.
How it works
Airbnb profitability depends on average nightly price, occupancy rate (nights rented / nights available), Airbnb host fees (3–5%), operating costs (cleaning, linen, supplies, maintenance) and applicable taxes. Comparing with long-term rental should also factor in vacancy periods, inventory management and non-payment risk.
📐 Formula
Gross revenue = Price/night × Occupied nights | Net revenue = Gross revenue - Airbnb fees - Costs - Taxes
📊 Reference table
| Item | Estimated rate | Example ($100/night, 20 nights/month) |
|---|---|---|
| Monthly gross revenue | 100 % | $2,000 |
| Airbnb host fees (3 %) | -3 % | - $60 |
| Cleaning ($15/turnover) | variable | - $300 |
| Supplies and maintenance | ~5 % | - $100 |
| Taxes (~10 %) | ~10 % | - $200 |
| Estimated monthly net revenue | ~67 % | ≈ $1,340 |
💡 Practical examples
Example 1: apartment at $120/night, 70% occupancy
Annual gross revenue: 120 × 365 × 70% = $30,660. After Airbnb fees, cleaning and costs: ~$25,000 net before tax. Long-term rental same location: ~$14,400/year.
Example 2: tax reporting threshold
In the US, Airbnb income exceeding $600/year must be reported. Beyond $20,000 and 200 transactions, Airbnb issues a 1099-K form.
Example 3: Airbnb vs long-term rental comparison
Long-term: $900/month net = $10,800/year. Airbnb same property: $2,000/month gross - $660 costs ≈ $1,340/month net = $16,080/year. Gain: +49%.