Vacation vs Long-Term Rental Calculator
Compare the same property as a short-term rental (Airbnb/VRBO) vs. a traditional annual lease. See net income, break-even occupancy, after-tax impact, and the hybrid peak/off-season strategy.
Compare STR revenue across occupancy scenarios vs. your stable LTR rent.
| Occupancy | STR Revenue | STR Net (after mortgage) | vs LTR |
|---|---|---|---|
| 40% | $29,200 | -$32,480 | -$29,448 |
| 55% | $40,150 | -$21,530 | -$18,498 |
| 70% | $51,100 | -$10,580 | -$7,548 |
| 85% | $62,050 | $370 | +$3,402 |
| LTR (stable) | $28,800 | -$3,032 | Baseline |
STR and LTR are taxed differently — STR with avg stay ≤7 days files on Schedule C (self-employment tax applies) vs. Schedule E for LTR.
How to Use This Vacation vs Long-Term Rental Calculator
This calculator compares the same property as an Airbnb/VRBO short-term rental (STR) versus a traditional annual lease (LTR). Unlike separate STR and rental calculators, this tool directly answers the decision: which strategy puts more money in your pocket with this specific property?
Quick Calculator
Enter your Property Value, Monthly Mortgage Payment, Nightly STR Rate, STR Occupancy Rate, and Monthly LTR Rent. The calculator instantly shows annual revenue and net income for both strategies. A 60% STR occupancy rate is a reasonable default for many markets — adjust based on local Airbnb data (use AirDNA or Rabbu for real comps).
Advanced: Full Expense Comparison
The Revenue Comparison tab shows STR income across four occupancy scenarios (40%, 55%, 70%, 85%) and calculates your break-even occupancy rate. Expense Difference quantifies the real cost gap between strategies: STR requires you to pay all utilities, furnish the property, cover cleaning between stays, and pay higher insurance. Time Investment calculates the opportunity cost of self-managing an STR versus a mostly passive LTR.
Pro: After-Tax, Regulatory Risk & Hybrid Strategy
The After-Tax tab models the critical tax treatment difference: STR with average stays ≤7 days files on Schedule C (triggering 15.3% self-employment tax), while LTR files on Schedule E (passive income, no SE tax). Regulatory Risk applies a probability-weighted haircut to STR income based on the growing trend of STR bans and restrictions. Hybrid Strategy models running STR during peak season and LTR during slow months for maximum annual revenue.
STR vs LTR Income Formula
LTR Annual Revenue = Monthly Rent × 12
Break-Even Occupancy = (LTR Net Income + STR Fixed Costs) ÷ (Nightly Rate × 365) × 100
STR Net Income = STR Revenue − Platform Fees − Insurance − Utilities − Cleaning − Furnishing (amortized) − Management
After-Tax STR (Schedule C): Net Income × (1 − Marginal Rate − 15.3% SE Tax)
After-Tax LTR (Schedule E): Net Income × (1 − Marginal Rate only)
The most important calculation is break-even occupancy — the STR occupancy rate where STR nets the same as LTR. If your market consistently beats break-even, STR wins. If occupancy is volatile or trending down, LTR's stability may be worth the lower ceiling.
Example: Beach Condo in Destin, Florida
The Hendersons' Gulf-View Condo
| Property Value | $450,000 |
| Monthly Mortgage (PITI) | $2,600 |
| Nightly STR Rate | $220 |
| STR Occupancy | 68% |
| STR Annual Revenue | $54,604 |
| STR Total Expenses | $22,800 |
| STR Net (before mortgage) | $31,804 |
| Monthly LTR Rent | $2,800 |
| LTR Annual Revenue | $33,600 |
| LTR Total Expenses | $5,200 |
| LTR Net (before mortgage) | $28,400 |
| STR Advantage | $3,404/year |
| Break-Even Occupancy | 52% |
STR wins by about $280/month in this beach market — but only if they maintain 68% occupancy. At 52% (break-even), both strategies are equivalent. If Destin follows other Florida beach markets in tightening STR regulations, the LTR becomes the safer play.