Short-Term Rental vs Long-Term Rental Calculator — Canada & US
Compare Airbnb short-term rental income vs traditional long-term rent for the same property. Enter your ADR, occupancy, platform fees, and expenses — see which strategy earns more and the exact occupancy where STR breaks even. Free.
The STR vs LTR breakeven depends on your local market, regulations, and management appetite. This calculator runs a side-by-side comparison: STR (ADR × occupancy − platform fees − cleaning − ops) vs LTR (annual rent − vacancy − landlord expenses) to show which strategy produces higher net income and what occupancy the STR needs to beat the long-term rent.
Select your region for jurisdiction-specific rules (deposit caps, rent increase limits, transfer taxes, and more).
Inputs
Results
STR Annual Net
$22,520
LTR Annual Net
$22,500
STR Advantage
$20
Positive = STR wins; negative = LTR wins
STR Break-Even Occupancy
64.96%
Understanding This Calculator
Compare what the same property earns as a short-term rental versus a traditional lease, and find the occupancy where the two strategies break even.
How the math works
The calculator builds each side's annual net income and subtracts:
- STR net = (ADR × 365 × occupancy) × (1 − platform fee) − annual STR expenses
- LTR net = monthly rent × 12 × (1 − vacancy) − annual LTR expenses
The difference is the STR advantage (negative means the long-term lease wins). It also solves for the break-even occupancy — the occupancy at which STR net exactly equals LTR net. STR expenses are typically much higher than LTR expenses (cleaning, utilities, supplies, furnishing wear), which is why a higher gross does not automatically mean a higher net.
Worked example
Using the defaults — ADR $150 at 65% occupancy with 3% fees and $12,000 STR expenses, versus $2,500/month long-term rent with 5% vacancy and $6,000 expenses:
- STR net ≈ (150 × 365 × 0.65) × 0.97 − 12,000 ≈ 34,500 − 12,000 = $22,500
- LTR net = (2,500 × 12 × 0.95) − 6,000 = 28,500 − 6,000 = $22,500
These defaults land almost exactly at break-even (~65% occupancy) — a realistic picture of how thin the STR premium can be once its heavier expense load is counted.
How to read the result
If your realistic occupancy sits well above the break-even figure, STR earns more; below it, the lease wins. But weigh the non-financial differences before deciding:
- Effort: STR is near-daily hospitality work (or a 15–25% management fee that shifts the math).
- Volatility: STR income swings with seasons and events; a lease is steady.
- Regulation: licensing caps or principal-residence-only rules can end an STR strategy; check local bylaws first.
- Tenancy law: a long-term tenant gains protections an STR guest does not, which affects flexibility.
A modest STR advantage often is not worth the added work and risk; a large one may be.