How to Calculate Your Real STR Profit (Most Hosts Get This Wrong)
Most short-term rental hosts know their gross revenue. That number in the Airbnb dashboard — total payout for the month. What they don't know is their actual profit. And when they run the real math for the first time, the number is often sobering.
Why Airbnb Revenue ≠ Profit
Say your property brought in $4,200 last month. Before you celebrate, subtract:
- Platform fees (3%): −$126
- Cleaning costs ($80 × 10 turnovers): −$800
- Supplies/restocking: −$100
- Mortgage payment: −$1,200
- Utilities: −$200
- Insurance (STR policy): −$150
- Maintenance reserve (1.5% of value/yr): −$250
That leaves roughly $1,374. Not bad — but it's very different from $4,200. And the difference is what determines whether your property is a good investment.
Try Our Interactive STR Profit Calculator
Enter your nightly rate, occupancy, and expenses — get your real monthly profit, ADR, RevPAR, and breakeven occupancy instantly.
Calculate My STR Profit →The 5 Numbers Every STR Host Needs to Track
1. Net Operating Income (NOI) = Gross Revenue − Operating Expenses (excluding mortgage). If this is negative, no financing structure saves the deal.
2. Cash Flow = NOI − Mortgage Payment. Positive = the property pays you. Know this number.
3. Occupancy Rate = Nights Booked ÷ Nights Available. Don't count blocked personal-use nights as "available." Track them separately.
4. Average Daily Rate (ADR) = Total Revenue ÷ Nights Booked. Track month-over-month to see if your pricing strategy is working.
5. RevPAR = ADR × Occupancy Rate. The number hotel operators obsess over. Combines price and fill rate into a single benchmark.
Benchmarks to Target
| Metric | Struggling | Average | Top 20% |
|---|---|---|---|
| Occupancy | <50% | 55–65% | 70–80% |
| Net Margin | <15% | 20–30% | 35–45% |
| Review Score | <4.5 ⭐ | 4.5–4.7 ⭐ | 4.85+ ⭐ |
Low occupancy → pricing or listing problem. Low margins → expense audit or rate increase needed. Low rating → turnover system.
Track Everything in One Workbook
The STR Profit Dashboard is a 5-sheet Excel workbook that calculates all five metrics automatically — plus a 12-month P&L, ROI Calculator, and Tax Estimator. Enter your actuals once a month. Takes 10 minutes. You'll always know exactly where your property stands.
Want to run a quick estimate first? Use the free interactive calculator →