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STR break-even occupancy

What occupancy keeps a short-term rental from losing money at this nightly rate?

Your numbers

Break-even occupancy

49.9%

Net per occupied night$276
Occupied nights needed per month15.19
Days in an average month30.42

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

Assumptions

  • Guest-paid cleaning is assumed to offset cleaners and is not in ADR.
  • Costs include the lease or mortgage plus utilities, software, and supplies you actually pay.
  • No seasonality curve: one ADR all year.

Explore the numbers

Examples

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

Example 1

Arbitrage

$4,200 costs, $285 ADR.

Break-even occupancy

49.9%

Example 2

Soft market

Same costs, $210 ADR.

Break-even occupancy

67.8%

Example 3

Owned STR

Lower PITI, higher ADR.

Break-even occupancy

30.9%

What this calculates

Convert monthly STR costs and ADR into the occupancy rate that covers the operation after platform fees.

How to use it

  1. Put every cost that does not vanish on a vacant night into monthly costs.
  2. Use trailing ADR, not a peak-weekend screenshot.
  3. If break-even occupancy is above realistic market occupancy, the deal is too tight.

Common mistakes

  • Leaving rent out of costs on an arbitrage deal.
  • Using 100% occupancy as the plan.
  • Adding cleaning fees into ADR.

Formula

Nights needed = monthly costs ÷ (ADR × (1 − fee%)). Occupancy = nights needed ÷ (365/12).

FAQ

Is this the same as the Airbnb ROI calculator?

That tool is a full cash-on-cash model. This one answers the single occupancy question operators actually argue about.

What occupancy is realistic?

It is market-specific. If you cannot defend it with comps, do not underwrite it.

Should I include capex?

If furniture and appliances will be replaced, add a monthly reserve to costs.

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