Monthly and annual Airbnb net profit after fees, cleaning, mortgage, and expenses

Why Airbnb Gross Looks Better Than Airbnb Net

A property renting at 150/night with 70% occupancy looks like a 3,150 monthly business on gross revenue alone. By the time the mortgage, platform fees, cleaning crew, management, utilities, insurance, supplies, and occasional major repair come off the top, net profit often lands at 300-800/month — or negative. The gap between gross and net is where most first-time hosts get surprised. This calculator makes the subtraction explicit so the full picture is visible before committing to buy, renovate, or furnish a short-term rental property.

The Occupancy Rate That Actually Happens

Marketing brochures advertise 70-80% occupancy. Realistic averages are far lower. AirDNA market data suggests typical urban units run 55-65% annual occupancy after slow-season drag. Beach and ski destinations can hit 80%+ in season but 30-40% off-season, averaging 50-60%. New listings often struggle to hit 40% in year one as reviews and search ranking build. Unless you have specific comparables from your market showing 70%+, use 55-65% for planning purposes.

Platform Fee Reality

Airbnb's standard host service fee is 3% of booking subtotal. A simplified pricing structure (which some hosts use) charges hosts 14-16% and charges guests 0%. Most hosts stay on the default split (host 3%, guest 14.2%). VRBO charges 8% booking fee or 5% subscription-based. Booking.com charges 15-18% commission. Direct bookings charge nothing but require your own marketing, payment processing, and booking platform. The calculator takes platform fee as a percentage input so it fits whichever platform you use.

Cleaning Fees Versus Cleaning Costs

Hosts charge guests cleaning fees (typically 50-200 per stay). Cleaners charge hosts cleaning costs (typically 60-180 per turnover depending on property size). The gap is either profit or loss on cleaning. Many hosts run cleaning at cost or slightly negative to keep nightly rates competitive. The calculator takes both numbers so the real margin on cleaning is visible. If your cleaning fee is 100 and cleaning cost is 120, you lose 20 per turnover — worth knowing before bidding low on the nightly rate.

Worked Example

2-bedroom property, 150/night, 60% occupancy. Cleaning fee 120/stay, cleaning cost 140/stay. Platform fee 3%. No management company. Monthly mortgage 1,800. Monthly expenses (utilities, insurance, supplies, repairs amortized): 650. Monthly nights booked: 18. Accommodation revenue: 18 × 150 = 2,700. Cleaning revenue: 18/3 × 120 = 720. Gross revenue: 3,420. Platform fee: 103. Cleaning costs: 6 × 140 = 840. Net from operations: 3,420 - 103 - 840 = 2,477. After mortgage and expenses: 2,477 - 1,800 - 650 = 27. The property barely breaks even at this occupancy and rate. Raising nightly to 180 adds ~540/month to the bottom line. Getting occupancy to 70% adds ~420/month.

What This Calculator Leaves Out

Regulatory costs — short-term rental licenses, local occupancy taxes, mandatory insurance requirements. Depreciation and eventual asset replacement (furniture every 5-7 years, appliances every 10-15). Tax on profits (which in some jurisdictions is taxed at higher rates than long-term rental income). Opportunity cost of capital tied up in the property. Property management company fees if you use one (typically 20-35% of gross revenue). Major repairs, tree damage, guest incidents, chargebacks. Build a 10-15% buffer into expenses for these contingencies.