What occupancy should I use?

Use what comparable listings on the same street or building actually achieve, not a national or city-wide average. If you are unsure, enter a cautious figure and check that the worst case still works.

Does this include taxes?

No. Occupancy and lodging taxes are usually collected from guests and paid to the city or state separately, and income tax depends on your situation. The Airbnb tax calculator gives a rough set-aside.

What platform fee should I enter?

The fee depends on the platform and how your account is set up. Check the fee shown in your own host account and enter that percentage.

Why is my payback shown as never?

Payback only exists when the unit makes a profit. If monthly profit is zero or negative, the startup cash is never earned back at these numbers.

Can I use this for a unit I own?

Yes, if you replace rent with your full monthly ownership cost: mortgage, property tax, HOA fees and insurance. Ownership benefits such as depreciation are not modeled.

Is the result a forecast?

No. It is arithmetic on the numbers you enter. The worst, base and best cases show how sensitive the deal is, which is usually more useful than any single figure.

Rental Arbitrage Calculator

See monthly profit, break-even occupancy and your worst case before you sign a lease.

Written by RentalArbitrage AdminUpdated: October 2026

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Rental arbitrage means leasing a home long term and renting it to guests by the night. The whole business lives in the gap between the rent you owe every month and the booking income you hope to earn. This calculator puts both sides of that gap in front of you, then tests what happens when bookings disappoint.

How to Use It

Enter the rent and fixed bills from the lease you are considering.
Enter a nightly rate and occupancy from comparable listings nearby. Look at listings of the same size, in the same area, with similar reviews.
Add running costs: cleaning per stay, supplies, software and repairs, and the platform fee from your host account. Add a management fee only if you will pay someone to run the unit.
Enter the one-time cash you need before the first booking: deposit, furnishing and setup.

How to Read the Result

The headline is monthly profit after rent and every cost you entered. Below it:

Break-even occupancy is the share of nights you must book just to cover costs. The further your expected occupancy sits above it, the more room the deal has for a slow month.
Cash needed to start and payback tell you how long your money is at risk before the unit has paid you back.
Yearly return on startup cash compares twelve months of profit with the cash you put in. It looks high on most workable deals because the cash needed is small next to the income, which is also why a bad month hurts.

Read the worst case first. A deal that only works at the best case is a bet, not a plan, because the lease payment stays the same when bookings fall.

Worked Example

The example pre-filled above is a one-bedroom leased for $1,800 a month. It books 70% of nights at $165, guests stay 3 nights on average, and the cleaning fee is $85 against a $75 cleaning cost. Utilities, internet, insurance, supplies and software add $480 a month, and the platform takes 3%.

Booked nights: 30.4 × 70% = 21.3 a month, which is about 7 stays.
Money in: $4,114 in nightly rates and cleaning fees.
Money out: $2,935, including rent.
Profit: $1,179 a month, a 28.7% margin, with break-even at 46.1% occupancy.
Startup cash of $10,200 is paid back in about 8.7 months.

Now the worst case. If occupancy falls 15 points to 55% and the rate drops 10% to about $149, profit falls to about $170 a month. The unit still covers itself, but only just. That single row tells you more about this deal than the $1,179 does.

Mistakes That Make Deals Look Better Than They Are

Using peak-season numbers for the whole year. Enter a yearly average, or run the calculator once for your slow months.
Leaving out the cushion. New listings often take weeks to earn reviews. The startup cost calculator adds months of fixed costs as a buffer.
Forgetting permit and tax costs. Check the rules for your city on our legality pages before you trust any profit figure.
Counting your own time as free. If you manage the unit yourself, the profit here is also your pay for that work.

What This Does Not Include

Occupancy and lodging taxes collected from guests, income tax, damage beyond what insurance covers, long gaps between bookings, and seasonality within the year. Platform fees and cleaning fee rules differ by platform, so use the figures from your own account.

Frequently Asked Questions

What Occupancy Should I Use?: Use what comparable listings on the same street or building actually achieve, not a national or city-wide average. If you are unsure, enter a cautious figure and check that the worst case still works.
Does This Include Taxes?: No. Occupancy and lodging taxes are usually collected from guests and paid to the city or state separately, and income tax depends on your situation. The Airbnb tax calculator gives a rough set-aside.
What Platform Fee Should I Enter?: The fee depends on the platform and how your account is set up. Check the fee shown in your own host account and enter that percentage.
Why Is My Payback Shown as Never?: Payback only exists when the unit makes a profit. If monthly profit is zero or negative, the startup cash is never earned back at these numbers.
Can I Use This for a Unit I Own?: Yes, if you replace rent with your full monthly ownership cost: mortgage, property tax, HOA fees and insurance. Ownership benefits such as depreciation are not modeled.
Is the Result a Forecast?: No. It is arithmetic on the numbers you enter. The worst, base and best cases show how sensitive the deal is, which is usually more useful than any single figure.