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FinToolSuite
Updated May 14, 2026 · Real Estate · Educational use only ·

Short-Term Rental Calculator

STR seasonal income.

Calculate short-term rental income across peak and off-peak seasons using nightly rate, occupancy, and monthly expenses to estimate annual net profit.

What this tool does

This calculator models annual net income from short-term rental properties by separating peak and off-peak seasons. It computes total rental revenue based on your nightly rate, occupancy percentage in each season, and the number of months in your peak period, then subtracts cleaning costs per stay and fixed monthly expenses to show estimated annual net income. The result illustrates how occupancy rates and seasonal variation affect profitability over a full year. Nightly rate and occupancy percentages are typically the largest drivers of income; cleaning frequency and monthly overheads reduce the net figure. A common scenario involves a property with high summer occupancy but lower winter bookings, where this tool models income across both periods simultaneously. The calculation assumes consistent nightly rates year-round and does not account for taxes, insurance, maintenance reserves, vacancy risk, or local regulations affecting rental operations.


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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

STR (Short-Term Rental) annual income varies dramatically by season. Peak months (often summer for tourist areas): 80-95% occupancy. Off-peak: 30-50%. This tool models seasonal occupancy for realistic annual projection. Most STR underestimates ignore seasonality and use single average - usually overstates by 20-30%.

100/night, peak 90% occupancy 4 months, off-peak 40% × 8 months. Peak: 100 × 27 nights × 4 = 10,800. Off-peak: 100 × 12 nights × 8 = 9,600. Annual revenue 20,400. Less cleaning ~3,750 (30/3 stays/mo × 8 months × 60), less 6k fixed = 10,650 net. Modest profit, requires premium positioning to outperform long-term rental.

Best STR locations: tourist destinations with year-round demand (Lake District, Cornwall coast), business travel hubs (city centres near airports/conferences), unique properties (treehouses, glamping, themed rooms). Worst: residential areas without tourist appeal, oversupplied markets, tight regulation areas. Location matters more than property quality for STR success.

Run it with sensible defaults

Using nightly rate of 100, peak occupancy of 90%, off-peak occupancy of 40%, peak months per year of 4, the calculation works out to 10,320.00. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Nightly Rate, Peak Occupancy %, Off-Peak Occupancy %, Peak Months per Year, and Cleaning per Stay — do not pull with equal force. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

How the math works

Peak revenue = nights × rate × peak months. Off-peak similarly. Total revenue - cleaning (stays × cost) - fixed = annual net.

Why investors run this

Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents one scenario rather than a forecast.

Example Scenario

££100 × peak 90%/4mo + off-peak 40% = 10,320.00.

Inputs

Nightly Rate:£100
Peak Occupancy %:90
Off-Peak Occupancy %:40
Peak Months per Year:4
Cleaning per Stay:£60
Monthly Fixed Costs:£500
Expected Result10,320.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

The calculator computes annual net rental income by modelling peak and off-peak seasons separately. Peak revenue is calculated by multiplying the nightly rate by the number of peak nights (peak months × 30 × occupancy percentage). Off-peak revenue applies the same method to remaining months. Total cleaning costs are derived by estimating the number of stays in each season and multiplying by the per-stay cleaning fee. Annual fixed costs (utilities, maintenance, insurance, management) are then subtracted from combined revenues. The model assumes consistent nightly rates year-round, constant occupancy percentages within each season, thirty-day months, and that cleaning occurs after each checkout. It does not account for variable expenses, vacancy gaps between bookings, seasonal rate adjustments, market volatility, tax obligations, or transaction fees.

Frequently Asked Questions

Realistic occupancy split?
Tourist destinations: peak 80-95% (Apr-Sep), off-peak 20-40% (Oct-Mar). City centers: more even (60-75% year-round). Ski resorts: bimodal (winter peak + summer secondary). Match peak months to actual location demand pattern.
Which months peak?
General: May-Sep (5 months). Coastal/seaside: Jun-Aug (3 months tight peak + shoulders). Cities: Apr-Oct + Christmas. Ski areas: Dec-Mar. School holidays drive most family-area demand. Adjust peak_months input to match your specific area.
Cleaning passed to guest or absorbed?
Best practice: charge separately as 'cleaning fee' on Airbnb/booking platforms. Guest sees breakdown. Doesn't hurt conversion as long as nightly rate is competitive. Most successful STR hosts charge cleaning fee 100% to guest.
Realistic vs Airbnb estimates?
Airbnb's projected earnings often optimistic. Use AirDNA (paid subscription) for actual market data. Or check 'Smart Pricing' but reduce by 20-30%. New listings need 3-6 months to hit projected occupancy as reviews build. Plan for slow ramp.

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