Estimate your short-term rental revenue, expenses, net profit, ROI, and cash-on-cash return. Compare Airbnb vs long-term rental income with seasonal pricing analysis.
Airbnb income is calculated as: Gross Revenue = Nightly Rate × Occupancy Rate × 365. However, real profitability requires accounting for seasonal rate variations, cleaning costs per turnover, platform fees (Airbnb charges 3% host fee), and all operating expenses.
Net profit formula: Net Profit = Gross Revenue - Total Expenses - Platform Fees - Taxes. A well-managed Airbnb typically nets 40-60% of gross revenue after all costs.
| City | Avg Nightly Rate | Occupancy | Gross Revenue (2BR) | Net Profit (est.) |
|---|---|---|---|---|
| Miami, FL | $220 | 75% | $60,225/yr | $28,000/yr |
| Austin, TX | $175 | 68% | $43,435/yr | $18,000/yr |
| Nashville, TN | $195 | 72% | $51,246/yr | $22,000/yr |
| Orlando, FL | $160 | 78% | $45,552/yr | $20,000/yr |
| Denver, CO | $165 | 65% | $39,131/yr | $15,000/yr |
| Los Angeles, CA | $200 | 70% | $51,100/yr | $18,000/yr |
| Scottsdale, AZ | $250 | 73% | $66,613/yr | $32,000/yr |
| Charleston, SC | $185 | 71% | $47,937/yr | $21,000/yr |
Understanding your true costs is critical for Airbnb profitability. Most new hosts underestimate expenses by 30-40%. Here are typical monthly costs for a 2-bedroom Airbnb:
On average, Airbnb generates 2-3x the gross revenue of a comparable long-term rental, but with significantly higher expenses. After accounting for cleaning, furnishing, management, vacancy, and platform fees, Airbnb typically nets 30-80% more profit than a traditional rental — but requires more active management.
| Factor | Airbnb | Long-Term Rental |
|---|---|---|
| Gross Revenue | 2-3x higher | Baseline |
| Vacancy Risk | Higher (seasonal) | Lower (12-mo lease) |
| Operating Expenses | 40-60% of revenue | 15-25% of revenue |
| Management Time | 5-15 hrs/week | 1-2 hrs/week |
| Wear & Tear | Higher (more turnover) | Lower |
| Regulatory Risk | Higher (STR bans) | Low |
| Typical Net Profit | $1,500-$4,000/mo | $500-$1,500/mo |
How much can you make on Airbnb in 2026?
A well-positioned 2-bedroom Airbnb in a popular market earns $40,000-$65,000/year in gross revenue. After all expenses, expect $15,000-$32,000 in annual net profit (depending on whether you self-manage or hire a PM). Use our calculator above for your specific scenario.
What is a good occupancy rate for Airbnb?
65-75% is considered healthy. Top-performing listings in tourist areas achieve 80-90%. If you're below 50%, consider lowering your nightly rate or improving your listing (better photos, more amenities, faster response time).
What is a good ROI for an Airbnb investment?
A good Airbnb cash-on-cash return is 15-25%. This means for every $50,000 invested (down payment + setup), you earn $7,500-$12,500 in annual net profit. ROI above 20% is considered excellent and typically found in secondary markets with lower property costs.
How much does it cost to start an Airbnb?
Startup costs for Airbnb: furniture and decor ($8,000-$25,000 for a 2BR), photography ($200-$500), supplies ($500-$1,000), smart locks and tech ($300-$800), and initial marketing. Total: $10,000-$30,000 beyond your property purchase/lease costs.