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Short-Term Rental Calculator

Airbnb and VRBO income looks big until fees, turnovers, and slow months show up. Model the full year and find the occupancy your mortgage depends on.

Break-even occupancyFees, cleaning, and furnishing includedNo sign-up, no credit check

Ideas for you

Load a Texas scenario, then make it yours. Every number updates as you type.

The property

Price & setup

Price & setup

Furniture, linens, kitchen, decor.

Loan

Loan

Second-home or DSCR loan.

Bookings

Bookings

Across the whole year.

Average slow and busy months.

Per stay, paid by guests.

Per turnover, paid by you.

Fees & running costs

Fees & running costs

Host-only pricing is about 15.5%.

Software, lawn, pool, permits.

STR-specific policy.

Verdict

On the edge

Monthly cash flow
$194

At 64% booked, after fees, cleaning, every running cost, and the mortgage.

  • Nets $194 a month with every cost and the mortgage covered.
  • Cash-on-cash of 1.9% falls short of the 8% target.
  • Debt coverage of 1.11x sits below the 1.25x most investor lenders look for.
  • A long-term tenant might earn close to this with far less work. Run it through the rental calculator to compare.
Break-even occupancy60.4%Against 64% assumed.
Cash-on-cash return1.9%On $122,600 invested, furnishing included.
Cap rate6.3%The return if you paid all cash.
Revenue per available night$195Nightly rate times occupancy.
Weakest link: occupancy

Cash flow goes negative below 60.4% occupancy.

Today: 64.0%. Breaking point: 60.4%.

Stress test: where it breaks

One input at a time, everything else held where you set it. The last column is where the money runs out.

InputTodayBreaks at
Occupancy64.0%60.4%
Nightly rate$305$289
Interest rate7.25%8.36%

Where the bookings go

About 234 nights booked a year, 7.0 stays a month.

Nightly revenue
$5,937
Cleaning fees collected
$1,147
Gross bookings
$7,084
Platform fees
-$1,098
Management / co-host
-$1,275
Cleaning
-$939
Repairs & replacements
-$354
Utilities & internet
-$410
Supplies
-$120
Property tax
-$567
Insurance
-$308
Other costs
-$90
Before the loan (NOI)
$1,923
Mortgage (principal & interest)
-$1,729
Monthly cash flow
$194
Gross bookings / mo$7,084
Running costs / mo$5,16173% of bookings.
Debt coverage (DSCR)1.11xLenders like 1.25x+.
Mortgage$1,729On a $253,500 loan.

What this means

Short-term rentals earn more per night and cost more to run. Before you buy, check the city’s STR permit rules and HOA restrictions, and compare the same house as a long-term rental. If the gap is small, the steadier lease may be the better deal.

These results are estimates for educational purposes only and do not constitute a credit decision or loan approval.

The basics

From nightly rate to monthly cash flow

Multiply the nightly rate by the nights you actually book, add the cleaning fees guests pay, and you have gross bookings. Then the platform, the cleaner, the co-host, utilities, upkeep, taxes, insurance, and the mortgage each take their cut.

How it’s worked out

Cash flow = Rate × booked nights − fees & costs − mortgage

  • Booked nights: 365 times occupancy. 65% booked is about 237 nights a year.
  • RevPAN: revenue per available night: the nightly rate times occupancy. It lets you compare a pricey, emptier listing with a cheaper, fuller one.
  • Break-even occupancy: the occupancy where cash flow hits zero. The wider the gap to your assumption, the safer the deal.
Worked example

A $338,000 Wimberley cabin at $305 a night, 64% booked, 25% down at 7.25%, $28,000 to furnish, with an 18% co-host.

Booked nights a year
about 234
Gross bookings / mo
$7,084
Running costs / mo
-$5,161
Mortgage
-$1,729
Monthly cash flow
$194

It cash flows, but only 1.9% cash-on-cash on $122,600 in, and break-even occupancy is about 60%, just four points under the plan. Dropping the co-host changes the picture: try the Self-managed idea.

The verdict

How Kwalifai grades a short-term rental

Pencils out

Hits all three targets

Positive cash flow, at least 8% cash-on-cash on everything you put in (furnishing too), and bookings cover the mortgage 1.25x after running costs.

On the edge

Cash flows, misses a target

It cash flows, but thinly. A long-term tenant might earn about the same with far less work.

Doesn’t pencil

Negative at your occupancy

At the occupancy you assumed, the bookings don’t cover the costs and the loan.

Avoid these

Blind spots that flatter an STR

01

Spring-break occupancy

Summer weekends aren’t the year. Use a 12-month average that includes the slow months.

02

Guessing at fees

Host-only pricing on major platforms is around 15% to 16% of the booking. Check current fees for your listing type.

03

Free furniture

Furniture, linens, and kitchen gear are real cash in. Leave them out and cash-on-cash looks inflated.

04

Skipping the city code

Many Texas cities and HOAs restrict or permit STRs. A ban can turn the deal into a long-term rental overnight.

FAQ

Short-term rental questions, answered

Still unsure how a lender will see your deal? Ask Lowi AI for a scenario review.

Keep going

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These results are estimates for educational purposes only. They are not financial, investment, tax, or legal advice, and they are not a credit decision, loan approval, or commitment to lend. Verify every figure, including rents, taxes, insurance, and rehab costs, before making a decision. Kwalifai is a technology platform. Mortgage services are provided by a licensed loan originator (NMLS #2528067), licensed in Texas, enrolled with Ensure Home Loans LLC (NMLS #1666674).