Short-Term Rental Revenue Calculator Formula

Understand the math behind the short-term rental revenue calculator. Each variable explained with a worked example.

Use the Short-Term Rental Revenue Calculator

Formulas Used

Annual Net Revenue

annual_net = net_revenue

Average Monthly Revenue

monthly_avg = net_revenue / 12

Annual Gross Revenue

annual_gross = gross_revenue

Annual Platform Fees

platform_cost = platform_fees

Total Booked Nights

total_booked_nights = total_nights

Effective Nightly Rate

effective_nightly = total_nights > 0 ? net_revenue / total_nights : 0

Variables

VariableDescriptionDefault
avg_nightly_rateAverage Nightly Rate(USD)175
peak_nightly_ratePeak Season Nightly Rate(USD)225
peak_monthsPeak Season Months4
avg_occupancy_pctAverage Occupancy Rate(%)65
peak_occupancy_pctPeak Season Occupancy Rate(%)85
cleaning_feeCleaning Fee Per Stay(USD)125
avg_stay_nightsAverage Stay Length (nights)3
platform_fee_pctPlatform Host Fee(%)3
off_peak_monthsDerived value= 12 - peak_monthscalculated
peak_nights_bookedDerived value= peak_months * 30 * peak_occupancy_pct / 100calculated
offpeak_nights_bookedDerived value= off_peak_months * 30 * avg_occupancy_pct / 100calculated
peak_revenueDerived value= peak_nights_booked * peak_nightly_ratecalculated
offpeak_revenueDerived value= offpeak_nights_booked * avg_nightly_ratecalculated
total_nightsDerived value= peak_nights_booked + offpeak_nights_bookedcalculated
num_staysDerived value= avg_stay_nights > 0 ? total_nights / avg_stay_nights : 0calculated
total_cleaningDerived value= num_stays * cleaning_feecalculated
gross_revenueDerived value= peak_revenue + offpeak_revenue + total_cleaningcalculated
platform_feesDerived value= gross_revenue * platform_fee_pct / 100calculated
net_revenueDerived value= gross_revenue - platform_feescalculated

How It Works

Short-Term Rental Revenue Forecasting

Short-term rentals can generate significantly higher gross revenue than traditional leases, but they also have higher operating costs and variable income.

Revenue Drivers

  • Nightly rate: Set based on comparable listings, location, amenities, and seasonality
  • Occupancy rate: The percentage of available nights that are booked
  • Cleaning fees: Often charged per stay and can cover cleaning costs
  • Average stay length: Longer stays mean fewer turnovers but sometimes lower nightly rates

    • Seasonal Considerations

  • Peak season rates can be 20-50% higher than off-peak
  • Occupancy rates vary significantly between peak and off-peak periods
  • Minimum stay requirements can affect occupancy

    • Revenue vs. Long-Term Rental

  • STR gross revenue is often 1.5-3x a traditional lease
  • But operating expenses are higher: cleaning, supplies, utilities, higher insurance, platform fees
  • Net income advantage is typically 20-50% above a long-term lease in favorable markets

    • Worked Example

    $175 average nightly rate, $225 peak rate for 4 months, 65% average occupancy, 85% peak occupancy, $125 cleaning fee, 3-night average stay, 3% platform fee.

    avg_nightly_rate = 175peak_nightly_rate = 225peak_months = 4avg_occupancy_pct = 65peak_occupancy_pct = 85cleaning_fee = 125avg_stay_nights = 3platform_fee_pct = 3
    1. 01Peak nights booked: 4 x 30 x 85% = 102 nights
    2. 02Off-peak nights booked: 8 x 30 x 65% = 156 nights
    3. 03Peak revenue: 102 x $225 = $22,950
    4. 04Off-peak revenue: 156 x $175 = $27,300
    5. 05Total stays: 258 / 3 = 86 stays
    6. 06Cleaning revenue: 86 x $125 = $10,750
    7. 07Gross revenue: $22,950 + $27,300 + $10,750 = $61,000
    8. 08Platform fees: $61,000 x 3% = $1,830
    9. 09Net revenue: $61,000 - $1,830 = $59,170

    Ready to run the numbers?

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