How to read this result
In the default example, booked nights is 237.25. Fractional booked nights are an annual planning average. Cleaning income belongs in other income and cleaning expenses in variable costs; do not double count them.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Booked nights equal available nights times occupancy. Multiply by ADR for room revenue, then deduct room-revenue-based platform and management fees plus fixed and variable annual costs; add other annual income. RevPAR is room revenue per available night.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Average daily rate (ADR) (USD/night)
- Average booked nightly rate. Minimum: 0.
- Occupancy rate (%)
- Booked nights / available nights. Minimum: 0. Maximum: 100.
- Available nights (nights/year)
- Available nights in analysis period. Minimum: 1. Maximum: 366.
- Other annual income (USD/year)
- Cleaning fees or ancillary income retained by owner. Minimum: 0.
- Platform fee (% of room revenue)
- User-entered platform fee. Minimum: 0. Maximum: 100.
- Management fee (% of room revenue)
- User-entered management rate. Minimum: 0. Maximum: 100.
- Fixed operating expenses (USD/year)
- Utilities, insurance, taxes, supplies and other fixed operating costs. Minimum: 0.
- Variable costs (USD/year)
- Cleaning/turnover or other annual variable costs. Minimum: 0.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Average daily rate (ADR) | $180.00 |
| Occupancy rate | 65.00% |
| Available nights | 365 |
| Other annual income | $0.00 |
| Platform fee | 3.00% |
| Management fee | 15.00% |
| Fixed operating expenses | $18,000.00 |
| Variable costs | $0.00 |
| Item | Default scenario |
|---|---|
| Booked nights | 237.25 |
| Gross room revenue | $42,705.00 |
| RevPAR | $117.00 |
| Platform fees | $1,281.15 |
| Management fees | $6,405.75 |
| Operating profit | $17,018.10 |
| Break-even occupancy | 33.41% |
Assumptions and limitations
Uses user-entered assumptions and does not access Airbnb/AirDNA or guarantee local STR legality, demand or pricing.
Fractional booked nights are an annual planning average. Cleaning income belongs in other income and cleaning expenses in variable costs; do not double count them.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
Booked nights can be fractional in an annual average. Add cleaning collections to other income and cleaning payments to variable costs. Do not count either twice.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- Fannie Mae — Selling Guide B3-3.8-03, Short-Term Rental (09/02/2026)Current short-term-rental income context and vacancy/maintenance treatment.
Frequently asked questions
What is the difference between ADR and RevPAR?
ADR is the entered rate per booked night. RevPAR spreads room revenue across all available nights and therefore reflects occupancy.
How does STR break-even occupancy work?
The model covers net entered annual costs using room revenue after percentage fees. Costs and other income are held constant; no break-even percentage exists if fees consume all room revenue.