Estimate your potential Airbnb rental income and profit. Enter your nightly rate, occupancy, and expenses to see projected annual revenue, net income, and cash flow.
US average: 50-55%
Current host-only fee: 15.5%
Monthly Expenses
Electric, water, internet, trash
STR insurance avg: $165-250/mo
Self-managed: $0; Full-service: 20-35%
Gross Revenue
$35,175
Net Income
$-5,902
Net Income per Month
$-492
Occupied Nights / Year
201
Airbnb Fees (Annual)
$5,452
Total Expenses (Annual)
$41,077
Revenue formula: Nightly Rate x Occupied Nights + Cleaning Fees x Bookings. Net income subtracts Airbnb service fees, cleaning costs, and all monthly expenses.
How your $35,175 annual gross revenue is composed.
$150/night x 201 nights
$75/stay x 67 bookings
Compare your Airbnb income to estimated long-term rental income at 55% occupancy.
Short-Term (Airbnb)
Annual Revenue
$35,175
Est. Net Income
$-5,902
+Higher revenue potential
+Flexible personal use
+Dynamic pricing
-Higher turnover costs
-More management effort
-Seasonal fluctuations
Long-Term Rental
Annual Revenue
$29,700
Est. Net Income
$14,400
+Stable monthly income
+Less management
+Lower turnover costs
-Lower income ceiling
-Less flexibility
-Tenant risk
Long-term rental estimate based on ~55% of nightly rate for monthly rent. Actual values depend on your local market.
The fundamental revenue formula for short-term rentals is:
Annual Revenue = (Nightly Rate × Occupied Nights) + (Cleaning Fee × Number of Bookings)
Your net income subtracts the Airbnb service fee (currently 15.5% of gross bookings), actual cleaning costs, and all monthly operating expenses including mortgage, utilities, insurance, maintenance, and supplies. The difference between revenue and total expenses is your profit — or loss.
As of December 2025, Airbnb transitioned all hosts to a host-only fee of 15.5% of the booking subtotal. Guest service fees were removed entirely. This replaced the previous split-fee model where hosts paid about 3% and guests paid 14-16%.
Sources: Airbnb Help Center, Beyond Pricing
Occupancy rates vary dramatically by location. The national average sits around 50-54%, but top markets can exceed 80%.
| Market | Occupancy | Avg Nightly Rate |
|---|---|---|
| National Average | 50-54% | $230-260 |
| Los Angeles | ~67% | $217 |
| Nashville | ~60% | $514 |
| San Francisco | ~58% | $181 |
| Top CA suburbs | 85%+ | Varies |
Understanding your true operating costs is critical. Many new hosts underestimate expenses and overestimate profit.
| Expense | Typical Range |
|---|---|
| Airbnb service fee | 15.5% of gross bookings |
| Cleaning (per turnover) | $40-$300+ |
| Utilities (monthly) | $500-$700 |
| STR insurance (annual) | $1,500-$3,500 |
| Guest supplies (monthly) | $50-$250 |
| Maintenance & repairs | Variable |
| Property management | 20-35% of revenue |
Airbnb income is taxable, and how you report it affects how much you owe. Most hosts report on Schedule E (passive rental income, no self-employment tax). If you provide hotel-like services such as daily cleaning or meals, you must use Schedule C and pay self-employment tax (15.3%).
Sources: TurboTax, Neil.tax, Anderson Advisors
According to AirDNA's 2026 Outlook Report, STR supply growth has moderated to about 4.6% (well below the 20% peak in 2021-2022), and the STR Premium — earnings relative to investment costs — is at its highest level since 2022. Demand grew 4.9% in 2025, driving 2.9% RevPAR gains. Cities hosting the 2026 FIFA World Cup (Philadelphia, Dallas, Jersey City) are projected to see the strongest RevPAR increases.
Source: PR Newswire — AirDNA 2026 Report
According to AirDNA data, the average annual earnings for a US Airbnb host reached $44,235, though this varies enormously by location and property type. Monthly averages range from about $1,910 on the low end to $4,300+ for well-positioned properties. A private room listing averages roughly $203/night while an entire unit averages about $305/night.
As of December 2025, Airbnb uses a host-only fee model where hosts pay 15.5% of the booking subtotal (before taxes). Guest service fees have been removed entirely. This replaced the previous split-fee model where hosts paid about 3% and guests paid 14-16%. The 15.5% fee is automatically deducted from your payouts.
The national average US short-term rental occupancy rate is approximately 50-55% as of 2025, down from about 57% in 2024 as supply has grown faster than demand. An occupancy rate above 55% is generally considered strong. Top-performing markets like certain California cities can see rates of 80%+, while oversupplied markets may sit in the 30s.
Cleaning costs vary widely. A small 1-bedroom turnover averages $40-$90 per clean, while larger properties or professional services run $75-$300+ per turnover. In major US cities, professional cleaning averages around $145 per stay. Most hosts pass this cost to guests through a cleaning fee, but the actual cost of cleaning should be factored into your expense calculations.
Airbnb hosts can typically deduct mortgage interest, property taxes, depreciation (building, furniture, appliances), insurance premiums, cleaning and maintenance costs, utilities, guest supplies, property management fees, the 15.5% Airbnb service fee, and professional services like accounting. If your average guest stay is 7 days or fewer and you materially participate (500+ hours/year), losses may offset W-2 income.
If you rent your property for 14 days or fewer per year and also use it personally, the income is completely tax-free — you don't even need to report it (this is sometimes called the Augusta Rule). If you exceed 14 days of rental, all rental income becomes taxable.
Dedicated short-term rental insurance typically costs $1,500-$3,500 per year ($125-$290/month). Airbnb's free AirCover program provides up to $3 million in Host Damage Protection and $1 million in liability insurance, but it does not cover intentional damage, wear and tear, or non-guest-related claims. Most experts recommend supplementing AirCover with a dedicated STR policy.
Property management fees range from 10-15% for half-service to 20-35% for full-service management (the US average is about 28%). Full-service managers handle listing optimization, guest communication, cleaning coordination, and maintenance. It makes financial sense if the time savings allows you to scale to multiple properties or if you live far from the rental. Self-management is more profitable for a single local property.
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