Short-Term Rental Occupancy Break-Even Calculator

Find the exact occupancy rate you need to cover all expenses and start making a profit on your short-term rental.

Your average nightly rental rate

Cleaning fee charged to guests

Principal and interest only

Monthly portion of annual property tax

Property insurance (STR often 20% higher)

Homeowners association fees

Electric, water, gas, internet, cable

Toiletries, cleaning supplies, minor repairs

Break-Even Nights = Total Monthly Expenses / (Nightly Rate + (Cleaning Fee / Avg Stay Length)) × 0.97\nBreak-Even Occupancy (%) = (Break-Even Nights / 30) × 100\nNet Revenue/Night = (Nightly Rate + (Cleaning Fee / 3)) × 0.97 (after 3% host fee)
Nightly Rate: $150 | Cleaning Fee: $75 | Mortgage: $1,500\nProperty Tax: $200 | Insurance: $100 | HOA: $0 | Utilities: $250 | Supplies: $100\n\nTotal Expenses: $2,250/month\nRevenue/Night: ($150 + $25) × 0.97 = $169.55\nBreak-Even: $2,250 ÷ $169.55 = 13.3 nights/month\nBreak-Even Occupancy: (13.3 / 30) × 100 = 44.3%\n\nAt 60% occupancy (18 nights):\nRevenue: (18 × $150) + (6 × $75) = $3,150\nAfter Fees: $3,150 × 0.97 = $3,055.50\nProfit: $3,055.50 - $2,250 = $805.50/month

What is the occupancy break-even point for short-term rentals?

The break-even occupancy rate is the minimum percentage of nights you must book to cover all expenses (mortgage, utilities, cleaning, supplies, fees). For example, if your monthly expenses are $2,500 and you charge $150/night, your break-even is $2,500 ÷ $150 = 16.7 nights (56% occupancy). Booking below this means losing money.

How do seasonal fluctuations affect break-even?

Seasonality can swing occupancy from 30% in off-season to 90% in peak season. Calculate break-even separately for each season, then find your annual average. Many hosts lower nightly rates in off-season to maintain occupancy above break-even. A variable pricing strategy using tools like PriceLabs or AirDNA helps optimize revenue year-round.

Should I include my mortgage in break-even calculations?

Yes, include all fixed costs: mortgage (P&I), property taxes, insurance, HOA fees. Then add variable costs: utilities (higher for STRs), cleaning per stay, supplies, platform fees (3% Airbnb host fee), and maintenance reserves (5-10%). Your break-even occupancy must cover ALL of these to be truly profitable.

How can I lower my break-even occupancy rate?

Increase nightly rates (if market supports it), reduce expenses (switch to LED bulbs, negotiate insurance, DIY cleaning), minimize vacancy with dynamic pricing, add a cleaning fee to offset turnover costs, and reduce platform fees by encouraging direct bookings. Every $10/night increase can reduce break-even by 3-5 percentage points.

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