Rental Arbitrage Calculator
Free, with no sign-up. Test a short-term, whole-property or rent-by-the-room deal: results update as you type, and the numbers you enter never leave your browser.
Calculator
Short-term (nightly) rental arbitrage
Illustrative example — replace with your numbers (not market averages).
Off: nothing is stored unless you turn this on. Numbers never leave your browser.
Estimated results: short-term rental
What these numbers meanMonthly cash flow after reserves and debt service
$453.02
Typical month (flat assumptions) · pre-tax
- Revenue per month
- $4,283.6819.77 of 30.42 nights booked
- Operating costs per month
- $3,770.66incl. $1,850.00 master rent
- Annual cash flow
- $5,436.21annualized (flat assumptions)
- Cash-on-cash return
- 30.0%$5,436.21 ÷ $18,100
- Total upfront funding
- $18,100all startup uses
- Your cash required
- $18,100no startup loan entered
- Payback
- 40 monthsLonger than the 12-month lease
- Break-even occupancy
- 54.9%of available nights (16.69 of 30.42)
- Break-even nightly rate
- $158.04per night at 65.0% occupancy
- Max master rent
- $1,803.02to keep your $500.00 target
Estimates depend on your inputs and leave out costs the calculator does not model. Verify your financial assumptions and local requirements before committing to a lease.
More assumptions
Each line shows its current setting, so nothing is hidden when a section is closed.
Rent increases, pre-opening and prepaid rentNo rent increases · No pre-opening months · No prepaid rent
Fixed monthly operating costs$465.00/mo in total
Management, maintenance, reserves and laborManagement: none · Maintenance $75/mo · Reserve $60/mo · Owner labor excluded
Payment processing and absorbed lodging taxNo extra processing fee · No absorbed lodging tax
Only if it is charged separately from the platform fee, so it is not counted twice.
Nightly revenue alone, or nightly revenue plus guest cleaning fees.
Only tax paid out of your own revenue. Taxes collected from guests and remitted are not revenue or cost.
Check what your local tax applies to.
Other income and expensesNone entered
12-month seasonalityOff · flat 30.42-night months
Override any month's available nights, occupancy or nightly rate. Blank cells use the month's calendar days and your flat occupancy and rate. Annual results then add up the 12 months of a 365-day year, and payback uses the month-by-month schedule.
The calendar month of your first month with revenue (after any pre-opening months).
| Month | Available nights | Occupancy | Nightly rate |
|---|---|---|---|
| January | |||
| February | |||
| March | |||
| April | |||
| May | |||
| June | |||
| July | |||
| August | |||
| September | |||
| October | |||
| November | |||
| December |
Startup costs, deposits and reserveUpfront $18,100 · your cash $18,100
Rent you pay before opening and rent prepaid at signing are added automatically from the lease settings above.
Startup loan and debt serviceNo startup loan · No debt service
This is not an amortization or loan-payoff calculator: enter the monthly payment from your loan terms. Loan proceeds lower the cash you put in; the payment lowers monthly cash flow.
Detailed results
Each section shows its key figure; open it for the full table or notes.
Monthly breakdown
| Line | Per month | Annualized (× 12) |
|---|---|---|
| Revenue | ||
| Nightly revenue accommodation, before fees | $3,657.60 | $43,891.25 |
| Guest cleaning fees | $626.08 | $7,512.92 |
| Total revenue | $4,283.68 | $51,404.17 |
| Operating costs, including master rent | ||
| Master-lease rent | $1,850.00 | $22,200.00 |
| Fixed operating costs | $465.00 | $5,580.00 |
| Utilities | $260.00 | $3,120.00 |
| Internet | $70.00 | $840.00 |
| Insurance | $45.00 | $540.00 |
| Licenses and permits | $25.00 | $300.00 |
| Software | $35.00 | $420.00 |
| Other fixed costs | $30.00 | $360.00 |
| Platform fees | $642.55 | $7,710.63 |
| Cleaning (per stay) | $560.17 | $6,722.08 |
| Supplies and variable costs | $177.94 | $2,135.25 |
| Management or co-host fee | $0.00 | $0.00 |
| Maintenance and repairs | $75.00 | $900.00 |
| Owner labor (excluded) | $0.00 | $0.00 |
| Total operating costs | $3,770.66 | $45,247.96 |
| After operating costs | ||
| Operating surplus before reserves and debt service | $513.02 | $6,156.21 |
| Reserve contributions furniture and equipment | $60.00 | $720.00 |
| Debt service | $0.00 | $0.00 |
| Cash flow after reserves and debt service, pre-tax | $453.02 | $5,436.21 |
| Not shown because they are $0: other income, extra payment processing, absorbed lodging tax, paid operating labor, other expenses. | ||
Per month: 30.42 available nights · 19.77 occupied nights · 6.59 expected stays (fractional, never rounded up).
Startup sources and uses
| Item | Type | Amount |
|---|---|---|
| Uses | ||
| One-time setup spendingSpent | Spent | $13,100 |
| Furnishings | $8,500 | |
| Linens and housewares | $900 | |
| Equipment and appliances | $1,200 | |
| Locks and access devices | $350 | |
| Photography | $400 | |
| Initial cleaning | $250 | |
| Setup fees | $150 | |
| Professional fees | $750 | |
| Initial permits and licenses | $300 | |
| Other setup items | $300 | |
| Pre-opening rentRent before opening | Rent before opening | $0 |
| Refundable landlord depositRefundable; recovery not assumed | Refundable; recovery not assumed | $1,850 |
| Refundable utility depositsRefundable; recovery not assumed | Refundable; recovery not assumed | $150 |
| Prepaid rentRent paid in advance | Rent paid in advance | $0 |
| Working-capital reserveCash buffer, not an expense | Cash buffer, not an expense | $3,000 |
| Gross upfront funding required | $18,100 | |
| Sources | ||
| Startup loan proceeds appliedLoan; never revenue | Loan; never revenue | $0 |
| Operator's own cashYour cash at risk | Your cash at risk | $18,100 |
| Total sources | $18,100 | |
Refundable deposits and the working-capital reserve tie up cash but are not expenses, and the calculator does not assume you get them back. Loan proceeds are never revenue.
Return, payback and break-even
- Cash-on-cash return
- 30.0% Annual pre-tax cash flow after reserves and debt service ($5,436.21, annualized as 12 × a typical month) ÷ initial operator cash ($18,100).
- Payback
- 40 months Simple payback of about 40 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Break-even occupancy
- 54.9% Occupancy of available nights at which cash flow after reserves and debt service reaches $0. Denominator: available nights (30.42 per month). All other inputs are held as entered; stays, guest cleaning fees and cleaning costs, platform and processing fees, percentage management, variable costs, absorbed lodging taxes and occupancy-dependent income and expenses recalculate.
- Break-even nightly rate
- $158.04 Nightly rate at the entered occupancy at which cash flow after reserves and debt service reaches $0. All other inputs are held as entered; percentage platform and processing fees, percentage management and absorbed lodging taxes recalculate.
- Maximum master rent
- $1,803.02 Highest month-1 master rent that still leaves $500 a month after reserves and debt service at the other entered assumptions.
Cash timing by lease month
Stabilized figures describe a typical month at year-one rent. This schedule follows your cash through the committed lease: pre-opening months, rent paid at signing (credited in the month it covers, never paid twice), seasonal swings and rent increases.
Simple payback of about 40 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Starting point: your initial cash
- −$18,100
- Operating cash flow, first 12 months
- $5,436.21
- Cumulative cash after month 12
- −$12,663.79
Show the month-by-month schedule
Cash flow is the operating view (each month's rent deducted once). Cash view adds back rent already paid at signing for that month. Cumulative cash starts at minus your initial cash and adds the cash view each month. Payback is the first lease month from which cumulative cash stays at or above $0 through the end of the lease. Deposit and reserve recoveries are not included.
| Lease month | Phase | Master rent | Revenue | Operating costs | Reserves | Debt service | Cash flow | Rent paid at signing | Cash view | Cumulative cash |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$17,646.98 |
| 2 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$17,193.97 |
| 3 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$16,740.95 |
| 4 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$16,287.93 |
| 5 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$15,834.91 |
| 6 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$15,381.90 |
| 7 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$14,928.88 |
| 8 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$14,475.86 |
| 9 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$14,022.84 |
| 10 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$13,569.83 |
| 11 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$13,116.81 |
| 12 | Operating | $1,850.00 | $4,283.68 | $3,770.66 | $60.00 | $0.00 | $453.02 | $0.00 | $453.02 | −$12,663.79 |
Scenarios
The conservative and optimistic cases re-run the same engine with the changes below; edit them to test your own. Percentage points add to a rate: 60% occupancy − 10 points = 50%. Percent scales an amount: a $200 rate − 10% = $180. These are what-ifs, not predictions or a sign of a good deal.
| Change | Occupancy points | Nightly rate percent | Selected costs percent |
|---|---|---|---|
| Conservative | |||
| Optimistic |
| Scenario | Monthly cash flow | Annual cash flow | Cash-on-cash | Payback |
|---|---|---|---|---|
| ConservativeOccupancy −10 pts, Rate −10%, Costs +10% | −$373.12−$4,477.47 a year | −$4,477.47 | −24.7% | Not achieved |
| BaseYour inputs as entered | $453.02$5,436.21 a year | $5,436.21 | 30.0% | 40 months over the 12-month lease |
| OptimisticOccupancy +5 pts, Rate +5%, Costs as entered | $843.73$10,124.79 a year | $10,124.79 | 55.9% | 21.5 months over the 12-month lease |
Cost changes scale fixed operating costs, maintenance, other expenses, cleaning cost per stay and variable cost per night. Master rent, paid labor, owner labor, a fixed management fee, reserves and debt service are not scaled; percentage fees and percentage management follow the adjusted revenue.
Nightly rate × occupancy sensitivity
| Occupancynightly rate → | $148.00−20% | $166.50−10% | $185.00as entered | $203.50+10% | $222.00+20% |
|---|---|---|---|---|---|
| 45.0%−20 pts | −$871 | −$655 | −$440 | −$225 | −$10 |
| 55.0%−10 pts | −$520 | −$257 | $6 | $269 | $533 |
| 65.0%as entered | −$169 | $142 | $453 (your inputs) | $764 | $1,075 |
| 75.0%+10 pts | $182 | $541 | $900 | $1,258 | $1,617 |
| 85.0%+20 pts | $533 | $940 | $1,346 | $1,753 | $2,159 |
Stabilized monthly cash flow after reserves and debt service, in whole dollars. Each row adds percentage points to the occupancy of available nights; each column changes the nightly rate by a percent. All other inputs are held as entered.
Assumptions and formulas
Assumptions in these results
- All figures are pre-tax estimates in U.S. dollars. Income taxes, depreciation, appreciation and sale proceeds are not modeled: the operator does not own the property.
- Flat months use an annual-average 30.42 days (365 ÷ 12), so 12 months cover 365 days. Available nights: 30.42 per month (365 a year).
- Occupancy (65%) is a share of available nights, not of blocked nights.
- Expected stays = occupied nights ÷ average stay (3 nights), left fractional and never rounded up, so cleaning revenue and costs are not inflated.
- Guest cleaning fees are revenue; the actual cleaning cost per stay is deducted separately.
- Platform fee: 15% of accommodation revenue plus guest cleaning fees.
- No separate payment-processing cost is added. Enter one only if your platform or payment processor charges it separately from the host fee, so it isn't counted twice.
- Lodging taxes collected from guests for remittance, and guest service fees paid to a platform, are not host revenue or cost.
- No management or co-host fee is charged.
- Owner labor is excluded: the operator's own time is valued at $0, so cash flow is not a wage.
- The furniture and equipment replacement reserve ($60 per month) is a reserve contribution, not an operating expense.
- No debt service is modeled.
- Startup loan proceeds, refundable deposits and taxes collected for remittance are never counted as revenue.
- Refundable deposits and the working-capital reserve are cash tied up, not expenses; their recovery is not assumed and is excluded from payback.
- Annual figures are annualized (12 × a typical month) at the month-1 master rent. They are estimates, not income secured by the lease.
- The cash schedule covers the 12-month committed lease only; renewal is not assumed.
- Payback uses the simple formula (initial operator cash ÷ monthly cash flow) because monthly cash flow is flat.
- Break-even results re-run the full model with every other input held as entered, and are never capped at 100%. Startup cash and monthly cash flow within half a cent of $0 count as $0.
Formulas, in words
- Occupied nights = available nights × occupancy (a share of available nights, not blocked nights).
- Expected stays = occupied nights ÷ average stay, kept fractional so cleaning fees and costs are not inflated.
- Nightly revenue = occupied nights × nightly rate. Guest cleaning fees = stays × guest cleaning fee.
- Revenue = nightly revenue + guest cleaning fees + other income.
- Platform fee, extra payment processing and absorbed lodging tax = each rate × the base you choose for it.
- Cleaning cost = stays × cost per stay. Supplies = occupied nights × cost per night.
- Operating costs = master rent + fixed costs + management + the costs above + maintenance + paid labor + owner labor (only if entered) + other expenses.
- Operating surplus = revenue − operating costs. Cash flow = operating surplus − reserve contributions − debt service (pre-tax).
- Gross upfront funding = setup spending + pre-opening rent + refundable deposits + prepaid rent + working-capital reserve. Your cash = gross − startup loan proceeds.
- Cash-on-cash return = annual cash flow ÷ your cash. It is undefined (not infinite) when your cash is $0.
- Payback with flat months = your cash ÷ monthly cash flow, flagged when it is longer than the lease. With pre-opening months, prepaid rent, seasonality or a rent increase that takes effect within the committed lease it follows the cumulative schedule instead: the first lease month from which cumulative cash stays at or above $0, or “Not achieved” if your cash is not back by the lease end. The schedule stops at the lease end; renewal is not assumed.
- Break-even and maximum master rent re-run the full model with every other input held as entered, and are never capped at 100%.
- Flat months average 365 ÷ 12 = 30.42 days, so 12 months add up to a 365-day year.
- Stabilized figures (the summary and annual results) describe a typical operating month at year-one rent. First-year and whole-lease cash timing, including pre-opening months, prepaid rent and rent increases, is in the cash schedule.
- All results are pre-tax. Refundable deposits and the working-capital reserve are not assumed to come back.
Long-term whole-property sublease
Illustrative example — replace with your numbers (not market averages).
Off: nothing is stored unless you turn this on. Numbers never leave your browser.
Estimated results: whole-property sublease
What these numbers meanMonthly cash flow after reserves and debt service
$103.08
Typical month (flat assumptions) · pre-tax
- Revenue per month
- $1,980.58after vacancy and collection loss
- Operating costs per month
- $1,852.50incl. $1,600.00 master rent
- Annual cash flow
- $1,236.96annualized (flat assumptions)
- Cash-on-cash return
- 24.3%$1,236.96 ÷ $5,100
- Total upfront funding
- $5,100all startup uses
- Your cash required
- $5,100no startup loan entered
- Payback
- 49.5 monthsLonger than the 12-month lease
- Break-even sublease rent
- $2,038.10per month at 6.0% vacancy, 2.0% collection loss
- Max master rent
- $1,453.08to keep your $250.00 target
Estimates depend on your inputs and leave out costs the calculator does not model. Verify your financial assumptions and local requirements before committing to a lease.
More assumptions
Each line shows its current setting, so nothing is hidden when a section is closed.
Rent increases, pre-opening and prepaid rentNo rent increases · No pre-opening months · No prepaid rent
Fixed monthly operating costs$155.00/mo in total
Management, maintenance, reserves and laborManagement: none · Maintenance $60/mo · Reserve $25/mo · Owner labor excluded
Turnover, leasing and reimbursements0.5 turnovers/yr × $600 · Leasing fee $300 · No reimbursements
Monthly amount at full occupancy, collected only while occupied.
Average move-outs a year (0.5 = one every two years).
Cleaning, paint and repairs between occupants.
Agent or listing fee each time someone is placed.
Other income and expensesNone entered
Startup costs, deposits and reserveUpfront $5,100 · your cash $5,100
Rent you pay before opening and rent prepaid at signing are added automatically from the lease settings above.
Startup loan and debt serviceNo startup loan · No debt service
This is not an amortization or loan-payoff calculator: enter the monthly payment from your loan terms. Loan proceeds lower the cash you put in; the payment lowers monthly cash flow.
Detailed results
Each section shows its key figure; open it for the full table or notes.
Monthly breakdown
| Line | Per month | Annualized (× 12) |
|---|---|---|
| Revenue | ||
| Rent collected | $1,980.58 | $23,766.96 |
| Total revenue | $1,980.58 | $23,766.96 |
| Operating costs, including master rent | ||
| Master-lease rent | $1,600.00 | $19,200.00 |
| Fixed operating costs | $155.00 | $1,860.00 |
| Utilities | $90.00 | $1,080.00 |
| Insurance | $30.00 | $360.00 |
| Licenses and permits | $10.00 | $120.00 |
| Software | $15.00 | $180.00 |
| Marketing | $10.00 | $120.00 |
| Turnover allowance | $25.00 | $300.00 |
| Leasing fees | $12.50 | $150.00 |
| Management or co-host fee | $0.00 | $0.00 |
| Maintenance and repairs | $60.00 | $720.00 |
| Owner labor (excluded) | $0.00 | $0.00 |
| Total operating costs | $1,852.50 | $22,230.00 |
| After operating costs | ||
| Operating surplus before reserves and debt service | $128.08 | $1,536.96 |
| Reserve contributions furniture and equipment | $25.00 | $300.00 |
| Debt service | $0.00 | $0.00 |
| Cash flow after reserves and debt service, pre-tax | $103.08 | $1,236.96 |
| Not shown because they are $0: reimbursements, other income, paid operating labor, other expenses. | ||
Vacancy 6.0% · collection loss 2.0% of the rent left after vacancy. Master rent is owed in full in vacant months.
Startup sources and uses
| Item | Type | Amount |
|---|---|---|
| Uses | ||
| One-time setup spendingSpent | Spent | $1,500 |
| Locks and access devices | $150 | |
| Photography | $150 | |
| Initial cleaning | $200 | |
| Setup fees | $100 | |
| Professional fees | $750 | |
| Initial permits and licenses | $150 | |
| Pre-opening rentRent before opening | Rent before opening | $0 |
| Refundable landlord depositRefundable; recovery not assumed | Refundable; recovery not assumed | $1,600 |
| Refundable utility depositsRefundable; recovery not assumed | Refundable; recovery not assumed | $0 |
| Prepaid rentRent paid in advance | Rent paid in advance | $0 |
| Working-capital reserveCash buffer, not an expense | Cash buffer, not an expense | $2,000 |
| Gross upfront funding required | $5,100 | |
| Sources | ||
| Startup loan proceeds appliedLoan; never revenue | Loan; never revenue | $0 |
| Operator's own cashYour cash at risk | Your cash at risk | $5,100 |
| Total sources | $5,100 | |
Refundable deposits and the working-capital reserve tie up cash but are not expenses, and the calculator does not assume you get them back. Loan proceeds are never revenue.
Return, payback and break-even
- Cash-on-cash return
- 24.3% Annual pre-tax cash flow after reserves and debt service ($1,236.96, annualized as 12 × a typical month) ÷ initial operator cash ($5,100).
- Payback
- 49.5 months Simple payback of about 49.5 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Break-even sublease rent
- $2,038.10 Monthly sublease rent (at full occupancy) needed for $0 cash flow at 6% vacancy and 2% collection loss. All other inputs are held as entered; collected rent and any percentage management fee recalculate.
- Maximum master rent
- $1,453.08 Highest month-1 master rent that still leaves $250 a month after reserves and debt service at the other entered assumptions.
Cash timing by lease month
Stabilized figures describe a typical month at year-one rent. This schedule follows your cash through the committed lease: pre-opening months, rent paid at signing (credited in the month it covers, never paid twice), seasonal swings and rent increases.
Simple payback of about 49.5 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Starting point: your initial cash
- −$5,100
- Operating cash flow, first 12 months
- $1,236.96
- Cumulative cash after month 12
- −$3,863.04
Show the month-by-month schedule
Cash flow is the operating view (each month's rent deducted once). Cash view adds back rent already paid at signing for that month. Cumulative cash starts at minus your initial cash and adds the cash view each month. Payback is the first lease month from which cumulative cash stays at or above $0 through the end of the lease. Deposit and reserve recoveries are not included.
| Lease month | Phase | Master rent | Revenue | Operating costs | Reserves | Debt service | Cash flow | Rent paid at signing | Cash view | Cumulative cash |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,996.92 |
| 2 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,893.84 |
| 3 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,790.76 |
| 4 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,687.68 |
| 5 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,584.60 |
| 6 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,481.52 |
| 7 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,378.44 |
| 8 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,275.36 |
| 9 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,172.28 |
| 10 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$4,069.20 |
| 11 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$3,966.12 |
| 12 | Operating | $1,600.00 | $1,980.58 | $1,852.50 | $25.00 | $0.00 | $103.08 | $0.00 | $103.08 | −$3,863.04 |
Scenarios
The conservative and optimistic cases re-run the same engine with the changes below; edit them to test your own. Percentage points add to a rate: 60% occupancy − 10 points = 50%. Percent scales an amount: a $200 rate − 10% = $180. These are what-ifs, not predictions or a sign of a good deal.
| Change | Sublease rent percent | Vacancy points | Selected costs percent |
|---|---|---|---|
| Conservative | |||
| Optimistic |
| Scenario | Monthly cash flow | Annual cash flow | Cash-on-cash | Payback |
|---|---|---|---|---|
| ConservativeRent −5%, Vacancy +5 pts, Costs +10% | −$120.03−$1,440.38 a year | −$1,440.38 | −28.2% | Not achieved |
| BaseYour inputs as entered | $103.08$1,236.96 a year | $1,236.96 | 24.3% | 49.5 months over the 12-month lease |
| OptimisticRent +3%, Vacancy −2 pts, Costs as entered | $205.90$2,470.82 a year | $2,470.82 | 48.4% | 24.8 months over the 12-month lease |
Cost changes scale fixed operating costs, maintenance, other expenses and cost per turnover. Master rent, paid labor, owner labor, leasing fees, a fixed management fee, reserves and debt service are not scaled; percentage management follows the adjusted rent.
Assumptions and formulas
Assumptions in these results
- All figures are pre-tax estimates in U.S. dollars. Income taxes, depreciation, appreciation and sale proceeds are not modeled: the operator does not own the property.
- Collected rent = sublease rent × (1 − 6% vacancy) × (1 − 2% collection loss); collection loss applies to rent remaining after vacancy. Reimbursements and occupancy-dependent income are earned only while occupied.
- Master rent is owed to the owner in full every month, including vacant months.
- Turnover: 0.5 per year × ($600 turnover cost + $300 leasing fee), spread evenly as a monthly allowance.
- No management or co-host fee is charged.
- Owner labor is excluded: the operator's own time is valued at $0, so cash flow is not a wage.
- The furniture and equipment replacement reserve ($25 per month) is a reserve contribution, not an operating expense.
- No debt service is modeled.
- Startup loan proceeds, refundable deposits and taxes collected for remittance are never counted as revenue.
- Refundable deposits and the working-capital reserve are cash tied up, not expenses; their recovery is not assumed and is excluded from payback.
- Annual figures are annualized (12 × a typical month) at the month-1 master rent. They are estimates, not income secured by the lease.
- The cash schedule covers the 12-month committed lease only; renewal is not assumed.
- Payback uses the simple formula (initial operator cash ÷ monthly cash flow) because monthly cash flow is flat.
- Break-even results re-run the full model with every other input held as entered, and are never capped at 100%. Startup cash and monthly cash flow within half a cent of $0 count as $0.
Formulas, in words
- Rent collected = sublease rent × (1 − vacancy) × (1 − collection loss).
- Reimbursements are collected the same way; occupancy-dependent income and expenses scale with (1 − vacancy).
- Turnover and leasing allowances = turnovers per year × cost ÷ 12.
- Master rent is owed in full in vacant months.
- Operating costs = master rent + fixed costs + management + the costs above + maintenance + paid labor + owner labor (only if entered) + other expenses.
- Operating surplus = revenue − operating costs. Cash flow = operating surplus − reserve contributions − debt service (pre-tax).
- Gross upfront funding = setup spending + pre-opening rent + refundable deposits + prepaid rent + working-capital reserve. Your cash = gross − startup loan proceeds.
- Cash-on-cash return = annual cash flow ÷ your cash. It is undefined (not infinite) when your cash is $0.
- Payback with flat months = your cash ÷ monthly cash flow, flagged when it is longer than the lease. With pre-opening months, prepaid rent, seasonality or a rent increase that takes effect within the committed lease it follows the cumulative schedule instead: the first lease month from which cumulative cash stays at or above $0, or “Not achieved” if your cash is not back by the lease end. The schedule stops at the lease end; renewal is not assumed.
- Break-even and maximum master rent re-run the full model with every other input held as entered, and are never capped at 100%.
- Flat months average 365 ÷ 12 = 30.42 days, so 12 months add up to a 365-day year.
- Stabilized figures (the summary and annual results) describe a typical operating month at year-one rent. First-year and whole-lease cash timing, including pre-opening months, prepaid rent and rent increases, is in the cash schedule.
- All results are pre-tax. Refundable deposits and the working-capital reserve are not assumed to come back.
Long-term rent by the room
Illustrative example — replace with your numbers (not market averages).
Off: nothing is stored unless you turn this on. Numbers never leave your browser.
Estimated results: rent by the room
What these numbers meanMonthly cash flow after reserves and debt service
$198.71
Typical month (flat assumptions) · pre-tax
- Revenue per month
- $2,911.213.69 of 4 rooms filled on average
- Operating costs per month
- $2,662.50incl. $1,900.00 master rent
- Annual cash flow
- $2,384.55annualized (flat assumptions)
- Cash-on-cash return
- 19.3%$2,384.55 ÷ $12,350
- Total upfront funding
- $12,350all startup uses
- Your cash required
- $12,350no startup loan entered
- Payback
- 62.2 monthsLonger than the 12-month lease
- Break-even occupancy, every room
- 86.0%uniform-occupancy scenario, not a tenant count
- Break-even room rents
- 93.2%of the rents entered ($3,028.16 a month in all)
- Max master rent
- $1,798.71to keep your $300.00 target
Estimates depend on your inputs and leave out costs the calculator does not model. Verify your financial assumptions and local requirements before committing to a lease.
More assumptions
Each line shows its current setting, so nothing is hidden when a section is closed.
Rent increases, pre-opening and prepaid rentNo rent increases · No pre-opening months · No prepaid rent
Fixed monthly operating costs$530.00/mo in total
Management, maintenance, reserves and laborManagement: none · Maintenance $90/mo · Reserve $50/mo · Paid labor $80/mo · Owner labor excluded
Room turnover, leasing and reimbursements3 turnovers/yr × $250 · No leasing fee · No reimbursements
Utility or other charges each room renter pays, collected only while the room is occupied.
Total move-outs across all rooms in a year.
Cleaning, paint and repairs between occupants.
Agent or listing fee each time someone is placed.
Other income and expensesNone entered
Startup costs, deposits and reserveUpfront $12,350 · your cash $12,350
Rent you pay before opening and rent prepaid at signing are added automatically from the lease settings above.
Startup loan and debt serviceNo startup loan · No debt service
This is not an amortization or loan-payoff calculator: enter the monthly payment from your loan terms. Loan proceeds lower the cash you put in; the payment lowers monthly cash flow.
Detailed results
Each section shows its key figure; open it for the full table or notes.
Monthly breakdown
| Line | Per month | Annualized (× 12) |
|---|---|---|
| Revenue | ||
| Room rent collected | $2,911.21 | $34,934.55 |
| Total revenue | $2,911.21 | $34,934.55 |
| Operating costs, including master rent | ||
| Master-lease rent | $1,900.00 | $22,800.00 |
| Fixed operating costs | $530.00 | $6,360.00 |
| Utilities | $320.00 | $3,840.00 |
| Internet | $80.00 | $960.00 |
| Insurance | $40.00 | $480.00 |
| Licenses and permits | $15.00 | $180.00 |
| Software | $20.00 | $240.00 |
| Marketing | $15.00 | $180.00 |
| Other fixed costs | $40.00 | $480.00 |
| Turnover allowance | $62.50 | $750.00 |
| Management or co-host fee | $0.00 | $0.00 |
| Maintenance and repairs | $90.00 | $1,080.00 |
| Paid operating labor | $80.00 | $960.00 |
| Owner labor (excluded) | $0.00 | $0.00 |
| Total operating costs | $2,662.50 | $31,950.00 |
| After operating costs | ||
| Operating surplus before reserves and debt service | $248.71 | $2,984.55 |
| Reserve contributions furniture and equipment | $50.00 | $600.00 |
| Debt service | $0.00 | $0.00 |
| Cash flow after reserves and debt service, pre-tax | $198.71 | $2,384.55 |
| Not shown because they are $0: reimbursements, other income, leasing fees, other expenses. | ||
Per month: 3.69 occupied room-months out of 4 rooms. Master rent and shared costs are charged once for the property.
Startup sources and uses
| Item | Type | Amount |
|---|---|---|
| Uses | ||
| One-time setup spendingSpent | Spent | $7,250 |
| Furnishings | $4,000 | |
| Linens and housewares | $300 | |
| Equipment and appliances | $600 | |
| Locks and access devices | $400 | |
| Photography | $200 | |
| Initial cleaning | $250 | |
| Setup fees | $150 | |
| Professional fees | $900 | |
| Initial permits and licenses | $250 | |
| Other setup items | $200 | |
| Pre-opening rentRent before opening | Rent before opening | $0 |
| Refundable landlord depositRefundable; recovery not assumed | Refundable; recovery not assumed | $1,900 |
| Refundable utility depositsRefundable; recovery not assumed | Refundable; recovery not assumed | $200 |
| Prepaid rentRent paid in advance | Rent paid in advance | $0 |
| Working-capital reserveCash buffer, not an expense | Cash buffer, not an expense | $3,000 |
| Gross upfront funding required | $12,350 | |
| Sources | ||
| Startup loan proceeds appliedLoan; never revenue | Loan; never revenue | $0 |
| Operator's own cashYour cash at risk | Your cash at risk | $12,350 |
| Total sources | $12,350 | |
Refundable deposits and the working-capital reserve tie up cash but are not expenses, and the calculator does not assume you get them back. Loan proceeds are never revenue.
Return, payback and break-even
- Cash-on-cash return
- 19.3% Annual pre-tax cash flow after reserves and debt service ($2,384.55, annualized as 12 × a typical month) ÷ initial operator cash ($12,350).
- Payback
- 62.2 months Simple payback of about 62.2 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Break-even occupancy, every room
- 86.0% Uniform-occupancy scenario: one occupancy applied to every room at its own rent. It is not a required tenant count. All other inputs are held as entered; collected rent, reimbursements, any percentage management fee and occupancy-dependent income and expenses recalculate.
- Break-even room rents
- 93.2% Factor applied to every room rent (at each room's entered vacancy) for $0 cash flow. All other inputs are held as entered; collected rent and any percentage management fee recalculate.
- Maximum master rent
- $1,798.71 Highest month-1 master rent that still leaves $300 a month after reserves and debt service at the other entered assumptions.
Cash timing by lease month
Stabilized figures describe a typical month at year-one rent. This schedule follows your cash through the committed lease: pre-opening months, rent paid at signing (credited in the month it covers, never paid twice), seasonal swings and rent increases.
Simple payback of about 62.2 months is longer than the 12-month committed lease. Recovering the initial cash would depend on a renewal that is not guaranteed. Deposit and reserve recoveries are excluded.
- Starting point: your initial cash
- −$12,350
- Operating cash flow, first 12 months
- $2,384.55
- Cumulative cash after month 12
- −$9,965.45
Show the month-by-month schedule
Cash flow is the operating view (each month's rent deducted once). Cash view adds back rent already paid at signing for that month. Cumulative cash starts at minus your initial cash and adds the cash view each month. Payback is the first lease month from which cumulative cash stays at or above $0 through the end of the lease. Deposit and reserve recoveries are not included.
| Lease month | Phase | Master rent | Revenue | Operating costs | Reserves | Debt service | Cash flow | Rent paid at signing | Cash view | Cumulative cash |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$12,151.29 |
| 2 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$11,952.57 |
| 3 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$11,753.86 |
| 4 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$11,555.15 |
| 5 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$11,356.44 |
| 6 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$11,157.73 |
| 7 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$10,959.01 |
| 8 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$10,760.30 |
| 9 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$10,561.59 |
| 10 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$10,362.88 |
| 11 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$10,164.16 |
| 12 | Operating | $1,900.00 | $2,911.21 | $2,662.50 | $50.00 | $0.00 | $198.71 | $0.00 | $198.71 | −$9,965.45 |
Scenarios
The conservative and optimistic cases re-run the same engine with the changes below; edit them to test your own. Percentage points add to a rate: 60% occupancy − 10 points = 50%. Percent scales an amount: a $200 rate − 10% = $180. These are what-ifs, not predictions or a sign of a good deal.
| Change | Every room rent percent | Vacancy points | Selected costs percent |
|---|---|---|---|
| Conservative | |||
| Optimistic |
| Scenario | Monthly cash flow | Annual cash flow | Cash-on-cash | Payback |
|---|---|---|---|---|
| ConservativeRents −5%, Vacancy +5 pts, Costs +10% | −$164.84−$1,978.10 a year | −$1,978.10 | −16.0% | Not achieved |
| BaseYour inputs as entered | $198.71$2,384.55 a year | $2,384.55 | 19.3% | 62.2 months over the 12-month lease |
| OptimisticRents +3%, Vacancy −2 pts, Costs as entered | $350.99$4,211.88 a year | $4,211.88 | 34.1% | 35.2 months over the 12-month lease |
Cost changes scale fixed operating costs, maintenance, other expenses and cost per turnover. Master rent, paid labor, owner labor, leasing fees, a fixed management fee, reserves and debt service are not scaled; percentage management follows the adjusted rent.
Rent roll
| Room | Rent | Vacancy | Collection loss | Collected per month |
|---|---|---|---|---|
| Room 15.0% vacant · 3.0% loss (shared) | $875.00 | 5.0% | 3.0% shared | $806.31 |
| Room 28.0% vacant · 3.0% loss (shared) | $825.00 | 8.0% | 3.0% shared | $736.23 |
| Room 38.0% vacant · 3.0% loss (shared) | $800.00 | 8.0% | 3.0% shared | $713.92 |
| Room 410.0% vacant · 3.0% loss (shared) | $750.00 | 10.0% | 3.0% shared | $654.75 |
| All rooms | $2,911.21 |
Each room is calculated on its own and then summed. Master rent and shared costs are charged once for the property.
One-room-vacant stress test
| Room left empty all month | Its rent | Monthly cash flow | Change |
|---|---|---|---|
| Room 1Rent $875.00 | $875.00 | −$607.60 | −$806.31 |
| Room 2Rent $825.00 | $825.00 | −$537.52 | −$736.23 |
| Room 3Rent $800.00 | $800.00 | −$515.21 | −$713.92 |
| Room 4Rent $750.00 | $750.00 | −$456.04 | −$654.75 |
Each row empties one room completely and keeps every other input as entered. Losing Room 1 hurts most: monthly cash flow falls to −$607.60.
Assumptions and formulas
Assumptions in these results
- All figures are pre-tax estimates in U.S. dollars. Income taxes, depreciation, appreciation and sale proceeds are not modeled: the operator does not own the property.
- Each room is calculated separately (rent × (1 − its vacancy) × (1 − its collection loss)) and then summed; differing vacancies are not averaged.
- Master rent and shared costs are charged once for the property, not per room, and are owed in full even when rooms are vacant.
- Rooms are assumed to be legally rentable bedrooms. Adding a room here does not establish legal occupancy or permission to rent or convert a room.
- Turnover: 3 room turnovers per year in total × ($250 turnover cost + $0 leasing fee), spread evenly as a monthly allowance.
- No management or co-host fee is charged.
- Owner labor is excluded: the operator's own time is valued at $0, so cash flow is not a wage.
- The furniture and equipment replacement reserve ($50 per month) is a reserve contribution, not an operating expense.
- No debt service is modeled.
- Startup loan proceeds, refundable deposits and taxes collected for remittance are never counted as revenue.
- Refundable deposits and the working-capital reserve are cash tied up, not expenses; their recovery is not assumed and is excluded from payback.
- Annual figures are annualized (12 × a typical month) at the month-1 master rent. They are estimates, not income secured by the lease.
- The cash schedule covers the 12-month committed lease only; renewal is not assumed.
- Payback uses the simple formula (initial operator cash ÷ monthly cash flow) because monthly cash flow is flat.
- Break-even results re-run the full model with every other input held as entered, and are never capped at 100%. Startup cash and monthly cash flow within half a cent of $0 count as $0.
Formulas, in words
- Each room: rent × (1 − its vacancy) × (1 − its collection loss, or the shared figure). Rooms are summed, never averaged.
- Reimbursements per room are collected only while that room is occupied, the same way as its rent. Other income and expenses per occupied room-month scale with the sum of (1 − each room's vacancy).
- Master rent and shared costs are charged once for the property, not per room.
- Turnover and leasing allowances = room turnovers per year × cost ÷ 12.
- Operating costs = master rent + fixed costs + management + the costs above + maintenance + paid labor + owner labor (only if entered) + other expenses.
- Operating surplus = revenue − operating costs. Cash flow = operating surplus − reserve contributions − debt service (pre-tax).
- Gross upfront funding = setup spending + pre-opening rent + refundable deposits + prepaid rent + working-capital reserve. Your cash = gross − startup loan proceeds.
- Cash-on-cash return = annual cash flow ÷ your cash. It is undefined (not infinite) when your cash is $0.
- Payback with flat months = your cash ÷ monthly cash flow, flagged when it is longer than the lease. With pre-opening months, prepaid rent, seasonality or a rent increase that takes effect within the committed lease it follows the cumulative schedule instead: the first lease month from which cumulative cash stays at or above $0, or “Not achieved” if your cash is not back by the lease end. The schedule stops at the lease end; renewal is not assumed.
- Break-even and maximum master rent re-run the full model with every other input held as entered, and are never capped at 100%.
- Flat months average 365 ÷ 12 = 30.42 days, so 12 months add up to a 365-day year.
- Stabilized figures (the summary and annual results) describe a typical operating month at year-one rent. First-year and whole-lease cash timing, including pre-opening months, prepaid rent and rent increases, is in the cash schedule.
- All results are pre-tax. Refundable deposits and the working-capital reserve are not assumed to come back.
Understanding the results
How to read the results
Every number in the results comes from one set of formulas, the same ones behind the worked examples in the guide. The results card shows the headline figures; each section under it (monthly breakdown, startup sources and uses, cash timing, scenarios and more) folds to one line with its key figure, and opens for the full table. Here is what each output means and what it leaves out.
Monthly cash flow after reserves and debt service
This is revenue minus operating costs (master rent included), minus the reserve contribution, minus debt service. It estimates the pre-tax cash the business could distribute in a typical operating month under your inputs. It is not taxable income: for example, a reserve contribution and the principal part of a loan payment are not deductible expenses, and furniture bought at startup is recovered under depreciation rules rather than deducted month by month (depending on the rules that apply, much or all of it may be deductible in the first year; see taxes). In the monthly breakdown, the operating surplus line above it shows the result before reserves and debt service. See cash flow in our glossary.
Annual cash flow: annualized or seasonal
With flat assumptions, annual cash flow is the typical month times 12 and is labeled annualized. With seasonality turned on, it is the sum of 12 different months. Either way it describes a stabilized year at year-one rent. It is not a forecast of your first year, which may include setup months and a slow start, and a 12-month figure is not income you are entitled to if your lease is shorter than 12 months.
Cash-on-cash return
The calculator divides modeled annual pre-tax cash flow after reserves and debt service (the numerator) by your initial operator cash, which is total upfront funding minus any financing applied to it (the denominator), and shows both numbers next to the percentage. If you put in no cash, the ratio is undefined, not infinite. Cash-on-cash ignores how long the lease lasts, whether deposits come back and how much risk you are taking, so a high percentage on a short lease can still lose money overall. Our glossary entry on cash-on-cash return describes the common first-year version; here the numerator is a stabilized year, not your first year.
Payback period versus the lease term
Payback is how long the business takes to return your initial operator cash. With flat, positive cash flow and no timing adjustments it is simply initial cash divided by monthly cash flow. When there are pre-opening months, prepaid rent, seasonality or rent increases during the lease, the calculator instead runs a month-by-month cumulative cash schedule that starts from your initial outlay. It never projects past the committed lease, because renewal is not guaranteed, and it leaves out any recovery of deposits or unused reserves. If monthly cash flow is zero or negative, it says "Not achieved under these assumptions." With flat months, a payback longer than the lease is still shown in months and flagged as longer than the lease; on the month-by-month schedule, cash that is not back by the end of the lease shows as "Not achieved." Either way, a payback longer than the lease means you are counting on a renewal you do not have.
Break-even
Break-even results are solved on the full model, so cleaning, platform fees, percentage management fees and variable costs all move with occupancy and rates.
- Short-term: the occupancy of available nights, and separately the nightly rate, at which monthly cash flow reaches zero with everything else held at your inputs. If break-even would need more than 100% occupancy, the calculator says it is not achievable instead of showing 100%. Compare break-even occupancy with what similar listings actually achieve; the gap is your margin of safety. Our glossary's break-even occupancy entry gives the simpler owner-side version used for long-term rentals, which divides costs by potential rent; the calculator's short-term figure is a share of available nights, solved on the full model.
- Whole-property: the scheduled sublease rent you would need at your vacancy and collection-loss assumptions.
- Rooms: the single occupancy rate that breaks even when applied to every room, and the uniform change in room rents that would. These are scenarios, not a count of tenants you need. The one-room-vacant stress test empties each room in turn, so you can see which vacancy hurts most.
Maximum master rent
This is the highest monthly rent you could pay the owner in the first lease year and still reach the monthly target cash flow you enter, with everything else unchanged. Use it before a negotiation as a walk-away number, not as a suggested offer.
Scenarios and sensitivity
The conservative, base and optimistic scenarios rerun the same model with adjustments you can edit. A percentage-point change adds to or subtracts from a rate: 60% occupancy minus 10 points is 50%. A percent change scales a value: 60% occupancy reduced by 10 percent is 54%. The short-term sensitivity table shows monthly cash flow across combinations of rate and occupancy changes. Use these to see how fragile a deal is; they are not predictions.
Stabilized estimates versus first-year cash timing
The headline monthly and annual figures describe a typical operating month at year-one rent. The cash schedule shows what happens to your bank balance month by month: the startup outlay, rent paid during pre-opening months, prepaid rent credited in the month it covers, seasonal swings and rent increases. Read both. A deal can show a healthy stabilized month and still leave you short of cash in its first months.
Hypothetical deals
Try a worked example
Five hypothetical deals from the guide. Every input was invented to show how the model behaves; none is a market average or a prediction. Load one into the calculator above, then change one input at a time.
-
Hypothetical example 1 · Short-term (nightly) rental arbitrage
Short-term rental, two-bedroom apartment (base case)
A self-managed nightly rental that shows positive monthly cash flow, but recovering the startup cash takes most of a 24-month lease and the operator's own time is not paid.
-
Hypothetical example 2 · Short-term (nightly) rental arbitrage
The same apartment with weaker demand (losing scenario)
Identical to Example 1 except occupancy falls from 70% to 58% of available nights and the average nightly rate from $180 to $165, which is enough to turn monthly cash flow negative.
-
Hypothetical example 3 · Short-term (nightly) rental arbitrage
The same apartment with a paid co-host (losing once labor is paid)
Identical to Example 1 except a hypothetical co-host is paid 20% of booking revenue (nightly revenue plus guest cleaning fees); paying for the work turns monthly cash flow negative, so the base case's positive result came from the operator's unpaid time, not from weaker demand as in Example 2.
-
Hypothetical example 4 · Long-term whole-property sublease
Whole-property sublease, furnished two-bedroom for multi-month stays
A furnished, utilities-included unit sublet to one occupant at a time for several months, with a 36-month master lease and 3% annual rent increases; the spread is modest, so the lease length decides whether the startup cash comes back.
-
Hypothetical example 5 · Long-term rent by the room
Rent by the room, four legally rentable bedrooms
A four-bedroom house leased for 36 months with rooms rented separately at different rents and vacancy assumptions; the rent roll looks healthy, but the one-room-vacant stress test shows how little cushion there is.
FAQ
Calculator questions
How the calculator works and what its figures include. For questions about the strategy itself, such as legality, landlords and taxes, see the guide's FAQ.
What occupancy do I need to break even on a short-term rental?
There is no standard number. Break-even occupancy is the share of available nights you must book for monthly cash flow to reach zero, and it moves with your rent, nightly rate, stay length, fees and fixed costs. The calculator solves it on the full model, so cleaning, platform fees and other variable costs change as occupancy changes. Compare the result with what similar listings actually achieve; if break-even is close to or above that, the deal has little margin for error.
Does the calculator save or send my numbers?
No account is needed, and nothing you enter is sent anywhere: every calculation runs in your browser. Saving is off by default. If you tick “Remember my numbers on this device”, your inputs are stored in this browser only, and “Clear saved numbers” removes them. The printable summary and the CSV file are created on your device too.
Why is cash-on-cash return shown as undefined?
Cash-on-cash return divides annual cash flow by your own cash in the deal. When that cash is $0, because no startup costs are entered or a startup loan covers all of them, the ratio has no meaning, so the calculator shows it as undefined rather than infinite. If no startup costs are entered, enter your setup costs, deposits and working-capital reserve to see it. If a startup loan covers all of them, none of your own cash is at risk, and the ratio stays undefined.
Can the calculator estimate demand or rent for an address?
No. It does not look up addresses, market rents, occupancy or local rules. It works out the consequences of the numbers you enter, so the results are only as good as those assumptions. The guide explains how to build them from comparable rentals: see underwriting demand, rates and workload.
How do I account for nights I block for maintenance or personal use?
Lower the available nights per month rather than the occupancy. Occupancy is a share of the nights available to book, so blocked nights reduce the available nights, not the occupancy percentage. With 12-month seasonality turned on, each month can have its own available nights, occupancy and nightly rate.
Does the calculator include taxes?
Its results are pre-tax, and it does not estimate income or self-employment tax. The only tax it can include is a lodging tax you absorb yourself in the short-term model; taxes you collect from guests and remit are neither revenue nor a cost. See taxes in the guide.
Does it work out loan payments?
No. It is not an amortization or loan-payoff calculator. Enter the startup loan proceeds you apply to startup costs and the monthly payment from your loan terms: the proceeds lower the cash you put in, and the payment lowers monthly cash flow. Loan proceeds are never counted as revenue.
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