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Airbnb Arbitrage Calculator

How much does a rental arbitrage deal make each month after rent, and what does it take to break even?

Your numbers

Monthly profit after rent

$641

Monthly revenue$3,954
Platform fee$613
Rent and other monthly costs$2,700
Annual profit$7,695
Cash-on-cash return51.3%
Months to pay back startup cost23.4
Breakeven occupancy52.5%
Breakeven nightly rate$162

Tip. Educational estimate with the assumptions listed on this page. Not tax, legal, or investment advice.

Assumptions

  • The default numbers are a sample. They are not a forecast or a promise of income. Use your own lease, quotes and market data.
  • The 15.5% default fee is the rate Airbnb says most hosts pay under its single-fee structure. Check the fee on your own listing.
  • A month is 365 ÷ 12 nights. One nightly rate and one occupancy apply all year, so slow seasons are not modeled.
  • If guests pay a cleaning fee, count it in your average nightly rate.
  • Monthly costs stay the same at any occupancy, so breakeven is a little cautious when cleaning falls with fewer stays.
  • Startup costs are counted in full, even if you may get a deposit back later. Income tax and lodging tax are not modeled.

Explore the numbers

Examples

Load a scenario, then change one input at a time.

Example 1

Sample deal

$1,800 rent, $200 a night, 65% booked.

Monthly profit after rent

$641

Example 2

Thin margin

The same unit with $600 more rent.

Monthly profit after rent

$41.27

Example 3

Cannot break even

$3,500 rent and only $120 a night.

Monthly profit after rent

-$2,449

What this calculates

Free Airbnb arbitrage calculator for rental arbitrage deals. Enter rent, costs, nightly rate and occupancy to see monthly profit after rent and breakeven.

How to use it

  1. Enter the rent from the lease you would sign, then your monthly bills.
  2. Enter a nightly rate and occupancy you can back up with similar listings near the unit.
  3. Enter the fee your platform charges you and all the cash you need to open.
  4. Read monthly profit first. Then compare breakeven occupancy with what the market really books.

Common mistakes

  • Using a peak-season nightly rate as the average for the whole year.
  • Leaving out the platform fee or using an old fee rate.
  • Counting a full calendar as the plan.
  • Leaving startup costs out of the return.
  • Signing a lease before you have written landlord consent and have checked the local rules.

Formula

Revenue = nightly rate × occupancy × 365 ÷ 12. Profit after rent = revenue − platform fee − rent − other monthly costs. Breakeven occupancy = monthly costs ÷ (nightly rate × (1 − fee%) × 365 ÷ 12). Breakeven nightly rate = monthly costs ÷ (occupancy × (1 − fee%) × 365 ÷ 12). Payback months = startup costs ÷ monthly profit.

How to run the numbers on a rental arbitrage deal

What this rental arbitrage calculator shows

In rental arbitrage, you rent a home from a landlord and list it for short stays with the landlord's consent. The first question is what is left each month after you pay the platform fee, the rent and your other bills. This calculator leads with that number. Then it shows your annual profit, your return on startup cost, how long payback takes, and the occupancy and nightly rate you need to break even.

A worked example

Take a sample unit with $1,800 of rent, $250 of utilities and internet, $500 of cleaning and supplies, and $150 of other costs. It earns $200 a night, is booked 65% of the time, pays a 15.5% platform fee and costs $15,000 to open. These are sample numbers, not a forecast. The calculator shows amounts of $100 or more in whole dollars.

ResultMathAnswer
Monthly revenue$200 × 365 × 65% ÷ 12$3,954.17
Platform fee$3,954.17 × 15.5%$612.90
Monthly costs$1,800 + $250 + $500 + $150$2,700
Monthly profit after rent$3,954.17 − $612.90 − $2,700$641.27
Annual profit$641.27 × 12$7,695
Cash-on-cash return$7,695 ÷ $15,00051.3%
Months to pay back$15,000 ÷ $641.2723.4
Breakeven occupancy$2,700 ÷ ($200 × 84.5% × 365 ÷ 12)52.5%
Breakeven nightly rate$2,700 ÷ (84.5% × 365 × 65% ÷ 12)$161.61

What breakeven tells you

Breakeven occupancy is the share of nights you must book to cover every monthly cost at your nightly rate. Breakeven nightly rate is the rate you must charge to cover those costs at your occupancy. At breakeven, your profit is $0 and you have not paid back any startup cost.

If breakeven occupancy is above 100%, the deal cannot break even at that rate. No amount of bookings will fix it. You need a higher rate, lower rent or lower costs.

The real risk: landlord consent and local rules

Good numbers do not matter if you cannot legally run the unit. Get written consent from the landlord that names short-term rentals. Then read the city and state rules on permits, lodging tax and who may host. Some cities limit short-term rentals or allow them only in the host's own home. Rules can also change after you open, so ask if the unit would still work as a longer rental. Do these checks before you sign a lease or buy furniture.

FAQ

What is a good rental arbitrage profit?

There is no one number that fits every market, so judge the deal with tests. Lower the nightly rate and occupancy and see if it still makes money. Compare your breakeven occupancy with what similar listings really book. Check that payback comes well before your lease ends. Last, ask if the profit is worth your hours and your risk.

How do I calculate breakeven occupancy?

Add your rent and other monthly costs. Then divide by your nightly rate, times the share you keep after the platform fee, times 365 ÷ 12 nights. With $2,700 of costs, a $200 rate and a 15.5% fee, that is $2,700 ÷ ($200 × 84.5% × 365 ÷ 12), or 52.5%. If the answer is above 100%, the deal cannot break even at that rate.

What costs do people forget in Airbnb arbitrage?

People often forget the platform fee, lodging tax, permit renewals, short-term rental insurance, pricing software, restocking, repairs, damage, and replacing furniture. Many also forget slow months, rent going up at renewal, and paying someone to run the unit if they stop doing it themselves.

Do I need landlord permission for rental arbitrage?

Yes. Get written consent to run the unit as a short-term rental before you sign or spend money. Without it, you could lose the lease and your startup costs. You also need to check local rules. Many cities require a permit and lodging tax, and some only allow short-term rentals in the host's own home, which rules out arbitrage. Ask a local attorney if the lease or city code is not clear.

Can I use this instead of an Airbnb arbitrage spreadsheet?

Yes, for testing one deal at a time. Change one number and every result updates. If you want a spreadsheet to compare many units, the formula on this page has everything you need for the cells.

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