Is break-even the same as profit?

No. At break-even you earn nothing. Every booked night above it is profit.

What counts as a fixed cost?

Anything you pay whether or not the unit is booked: rent, utilities, internet, insurance, supplies you stock monthly and software. Cleaning is handled per stay.

What is a good margin of safety?

There is no universal number. Compare your break-even with the occupancy that similar listings reach in their slowest months. If the slow-month figure is below your break-even, you will lose money in those months.

Why does a lower nightly rate raise break-even so much?

Fixed costs stay the same while each night earns less, so you need more nights to cover them.

Can break-even be above 100%?

Yes, if costs are high relative to the rate. That means the unit cannot cover its costs at this price even if it is booked every night.

Break-Even Occupancy Calculator

Find the occupancy your unit needs just to cover rent and costs.

Written by RentalArbitrage AdminUpdated: October 2026

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Break-even occupancy is the single number that tells you how fragile a rental arbitrage deal is. It answers one question: how many nights do you have to sell before the unit stops losing money?

How to Use It

Add up your fixed monthly costs: rent, utilities, internet, insurance, supplies and software.
Enter your nightly rate, average stay length, the cleaning fee you charge and what each clean costs you.
Enter the platform fee from your host account and the occupancy you expect.

How to Read the Result

Contribution per booked night is what each night adds after the platform fee and its share of cleaning. Fixed costs divided by that contribution gives the nights you must sell. The margin of safety is the gap between the occupancy you expect and break-even.

The table shows break-even at a lower and higher nightly rate. Rates move with the season and with competition, so treat your break-even as a range, not a point.

Worked Example

Fixed costs are $2,280 a month. Nights sell for $165 with a 3% platform fee, stays average 3 nights, and an $85 cleaning fee covers a $75 clean.

Each booked night contributes about $163.
$2,280 ÷ $163 means about 14 booked nights a month, or 46.1% occupancy.
Expecting 70% leaves a margin of safety of about 24 points.

If the rate falls 10% to about $149, break-even rises to about 15.6 nights, or 51.2%. Most of the lost margin comes from the lower rate, not from fewer bookings.

How to Lower Your Break-Even

Negotiate the rent. Every dollar off fixed costs lowers break-even directly.
Lengthen the average stay. Fewer turnovers mean lower cleaning cost per night. A minimum stay of two or three nights often helps.
Price the cleaning fee to cover the clean. Use the cleaning fee calculator.
Cut monthly subscriptions you don’t need. Small fixed costs add up across twelve months.

What This Does Not Include

Taxes, damage, slow months and the time a new listing takes to earn reviews. New listings often start below the market average, so plan for a lower occupancy in the first months.

Frequently Asked Questions

Is Break-Even the Same as Profit?: No. At break-even you earn nothing. Every booked night above it is profit.
What Counts as a Fixed Cost?: Anything you pay whether or not the unit is booked: rent, utilities, internet, insurance, supplies you stock monthly and software. Cleaning is handled per stay.
What Is a Good Margin of Safety?: There is no universal number. Compare your break-even with the occupancy that similar listings reach in their slowest months. If the slow-month figure is below your break-even, you will lose money in those months.
Why Does a Lower Nightly Rate Raise Break-Even so Much?: Fixed costs stay the same while each night earns less, so you need more nights to cover them.
Can Break-Even Be Above 100%?: Yes, if costs are high relative to the rate. That means the unit cannot cover its costs at this price even if it is booked every night.