Published Last updated
Short-Term Rental Calculator: Airbnb Revenue, DSCR, and Break-Even Occupancy
Enter your nightly rate, occupancy, and real operating costs to see monthly revenue, net operating income, the coverage ratio a lender would measure, the occupancy you need just to break even, and how the same property would perform on a long-term lease.
This short-term rental calculator converts your nightly rate and occupancy into monthly revenue, subtracts platform fees, cleaning, management, utilities, and supplies, and then divides the result by your total housing payment to produce a debt-service coverage ratio. It also solves for the occupancy at which the property exactly covers its payment and compares the result against a long-term lease at the market rent you enter.
- ✓Revenue is nightly rate multiplied by booked nights, not by every night in the month.
- ✓Platform fees, cleaning, management, utilities, and supplies routinely consume a large share of gross short-term revenue.
- ✓Lenders may use gross receipts, an appraiser market rent, or platform payout history, so the ratio they calculate may differ from your net figure.
- ✓Break-even occupancy is the single most useful number here: below it, you are funding the property.
- ✓Compare against the long-term lease figure before assuming short-term is the better use.
What this means for you: a short-term rental can out-earn a lease and still be the weaker deal once cleaning, management, and vacancy months are priced in — this tool shows you which side of that line your property falls on.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
How to use this calculator honestly
Use your own booking history if you have it. If you do not, use conservative assumptions and then test what happens when occupancy drops ten points. We deliberately do not auto-fill a nightly rate or occupancy for an address: those would be third-party projections, and presenting them as expected income for your property would be misleading. Every number below is one you supply.
The four calculations behind the results
- Gross revenue = nightly rate x (occupancy x 30.42 nights).
- Net operating income = gross revenue minus platform fees, management, cleaning, utilities, and supplies.
- Coverage ratio = the relevant rent figure divided by PITIA (principal, interest, taxes, insurance, and association dues). We show it on gross receipts, on your net figure, and on a long-term lease.
- Break-even occupancy = the occupancy at which net operating income exactly equals PITIA, given your per-night net after fees and your fixed monthly costs.
What most short-term rental models leave out
- Seasonality. A 62% annual average can be 85% in season and 30% out of it, and the mortgage is due in both.
- Furnishing and reset capital. The initial furnishing budget and periodic replacement are real costs that never appear in a monthly cash-flow model.
- Insurance. Short-term rental use typically requires a different policy than a long-term landlord policy, and it usually costs more.
- Local rules. Registration, permits, occupancy caps, minimum-stay ordinances, and association restrictions can shut down short-term use entirely. Check the city, county, and association rules before you buy, not after.
- Taxes. Many jurisdictions impose transient lodging or tourist development taxes on short stays. Speak to your tax advisor.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
What your result actually means
This tool returns several numbers rather than one, and each answers a different question. The gross coverage ratio says how the property looks to a program that measures short-term receipts against the housing payment before operating costs. The net coverage ratio says whether the property pays its own mortgage after the platform fee, management, cleaning, utilities and supplies you entered — that is the figure that matters to you as the operator. The long-term coverage ratio says what happens if short-term use ends and the unit goes onto a twelve-month lease. Break-even occupancy converts all of it into a single stress test: the share of nights the property has to stay booked just to cover its costs.
Read the gap between realistic occupancy and break-even occupancy as your margin for error. A property that breaks even at forty-five percent in a market that runs near seventy has room for a soft season, a repair, or an insurance increase. A property that breaks even at seventy percent in the same market does not. What none of these figures mean is an approval or a forecast: the revenue inputs are yours, not a prediction, and a lender will recalculate the qualifying income from a market-rent schedule, a short-term rental appraisal addendum, or your documented platform payout history instead.
Turning the output into financing
If the ratio works, the financing route is usually a short-term rental loan structured as a DSCR loan. Lenders document short-term income in one of three ways — an appraiser's market rent schedule, a short-term rental appraisal addendum, or twelve or more months of your actual platform payout history — and which one they use can move the ratio materially. Read DSCR loan requirements and how DSCR pricing works before you shop.
When the long-term column wins
If the long-term coverage ratio is close to the net short-term ratio, a lease is usually the better business: one tenant, no cleaning, no platform fee, no seasonality, lower insurance, and far less of your time. Short-term use has to win by a wide margin to be worth the operating load. This calculator puts both numbers next to each other so the comparison is not a feeling.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Short-Term Rental Income and DSCR Calculator
Your numbers
- Booked nights per month
- 18.9
- Gross monthly revenue
- $4,526
- Operating expenses
- $2,171
- Net operating income
- $2,356
- DSCR on gross receipts
- 1.33
- DSCR after your expenses
- 0.69
- DSCR if leased long term
- 0.76
- Monthly cash flow after PITIA
- $-1,044
- Break-even occupancy
- 80%
- Break-even booked nights
- 24.4
Illustrative estimate using the figures you entered. It is not a quote, lock, offer, or commitment to lend, and it is not a projection of income the property will earn. Lenders differ in how they document short-term rental income and whether they use gross receipts, a market-rent appraisal, or platform payout history, so the ratio your lender calculates can differ from the ratio shown here. Binding figures appear on your loan documents.
Next steps
Emailing your Short-term rental DSCR calculator scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Monthly nights are calculated as occupancy multiplied by 30.42, the average nights per month across a year. Gross revenue is the average nightly rate multiplied by those nights. Operating expenses are the platform fee and management fee as percentages of gross revenue, plus cleaning cost multiplied by stays per month, plus the utilities and supplies figures you enter. Net operating income is gross revenue less those expenses. Coverage ratios divide gross receipts, net operating income, and the long-term rent you enter by the monthly PITIA you enter. Break-even occupancy solves for the nights at which per-night net revenue covers PITIA plus fixed monthly costs, expressed as a share of 30.42 nights.
Every input is supplied by you; the tool does not source or predict nightly rates, occupancy, or expenses for any specific address, and its output is not a projection of income the property will earn. It excludes seasonality, furnishing and replacement capital, income taxes, lodging taxes, permit and registration costs, and financing costs other than the PITIA you enter. Lenders differ in how they document short-term rental income and may calculate a different ratio. Results are illustrative and are not a quote, lock, offer, or commitment to lend.
Results are illustrative estimates only and are not a quote, lock, offer, or commitment to lend. No rate, APR, or program approval is implied. Binding figures appear on your Loan Estimate. Eligibility, terms, and availability vary by borrower, property, lender, loan program, and state.
Talk through your scenario today
A Simply Approved Mortgages Loan Officer can confirm which of these paths actually fits your credit, income, and property. Educational only, no obligation.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
—
Loading PMMS…
15-Yr Fixed · national avg
—
Loading PMMS…
2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Compare a long-term lease, Section 8, and a short-term rental
The same house produces three different files depending on how you rent it. Enter your payment and your own operating assumptions, pick the county so the voucher column starts from the published Fair Market Rent, and compare what is left for debt service under each strategy. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend, and none of it is a projection of what your property will earn.
Shared inputs
Published Fair Market Rent for this selection: loading… a month. HUD source
Lease and voucher assumptions
Short-term rental assumptions
Optional. We look up published market performance for the address and fill the nightly rate and occupancy below. You can edit both afterwards.
Short-term operating costs are usually the largest of the three strategies, and the gross figure alone is never the comparison.
| Strategy | Gross after vacancy | Net before debt service | Cash flow vs PITIA | Coverage ratio |
|---|---|---|---|---|
| Long-term lease12-month lease, market rent | $2,444 | $2,200 | $-200 | 0.92 |
| Housing Choice Voucher (Section 8)HUD Fair Market Rent × payment standard | $0 | $0 | $-2,400 | — |
| Short-term rentalNightly rate × occupancy | $3,705 | $2,297 | $-103 | 0.96 |
On the assumptions entered, short-term rental leaves the most income before debt service. That is arithmetic, not advice: the strategy a lender will actually underwrite depends on the documentation available, the program, and whether the use is permitted at the address.
Long-term lease
- What underwriting reads
- The executed lease or the appraiser rent schedule (Form 1007/1025), commonly the lower of the two.
- Income pattern
- One tenant, one renewal cycle a year.
- What to check first
- A single move-out takes the whole income to zero until it re-leases.
Housing Choice Voucher (Section 8)
- What underwriting reads
- The executed HAP contract plus the tenant portion, generally compared with market rent.
- Income pattern
- The agency portion is paid by the PHA on a set schedule; the tenant portion stays your collection risk.
- What to check first
- The unit must pass inspection, and the PHA has to find the rent reasonable before the contract starts.
Short-term rental
- What underwriting reads
- Twelve months of platform or property-manager statements, or a market revenue projection where a program accepts one.
- Income pattern
- Seasonal and event-driven; revenue can swing widely month to month.
- What to check first
- Local ordinances, HOA rules, licensing, and a landlord policy that does not cover nightly stays.
Next steps
Emailing your Rental strategy comparison scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Each column starts from the income you enter, reduces it by the vacancy allowance you enter, then subtracts the operating-cost percentage you enter to reach net income before debt service. The voucher column starts from the published HUD Fair Market Rent for the county and unit size you select, multiplied by the payment standard percentage you enter. The short-term column multiplies your nightly rate by 30.42 average nights a month and your occupancy percentage. Coverage ratio divides net income before debt service by the monthly PITIA you enter.
Every figure is an estimate built from your own inputs and is not a quote, rate lock, offer, approval, or commitment to lend, and it is not a projection of income the property will earn. A Fair Market Rent is a published schedule, not an approved rent: the public housing agency sets the payment standard, must find the rent reasonable against comparable unassisted units, and must pass the unit at inspection before a contract begins. Short-term rental use may be restricted or prohibited by local ordinance or HOA rules, and requires insurance written for nightly stays. Lenders differ on which documents they will accept for each strategy and on how they treat vacancy and expenses, and program parameters can change without notice.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Related tools
Tools for a short-term rental file
Only the estimators that apply to this kind of file. Every output is an illustrative estimate built from figures you enter — not a quote, rate lock, offer, approval, or commitment to lend.
Business-purpose loans are for non-owner-occupied property only. Program availability, leverage and terms vary by state, property and program, and can change without notice. Simply Approved Mortgages LLC is a mortgage broker and arranges, but does not make, loans. Equal Housing Opportunity.
Short-term rental calculator: how to read your results
Answers to the most common short-term rental calculator: how to read your results questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
HUD USER
HUD USER — Fair Market Rents, for a long-term rent benchmark
Internal Revenue Service
IRS — Renting a dwelling unit you also use (Publication 527)
U.S. Bureau of Labor Statistics
Bureau of Labor Statistics — Consumer Price Index for lodging away from home
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the DSCR and investor financing library
This page sits inside our DSCR and investor financing coverage.
What most readers open next
- DSCR qualifying requirementsBecause coverage, reserves, experience, and entity rules in one place.
- Financing voucher-occupied rentalsBecause payment standards and HAP contracts change how rent is documented.
- DSCR cash-out refinanceBecause the usual way investors recycle equity into the next purchase.
- Portfolio and blanket financingBecause once several doors are stabilized, one loan can replace many.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
Short-Term Rental Loans
How lenders document Airbnb and VRBO income.
Read the guide →Guide
Airbnb Financing
Actual payout history versus market rent appraisals.
Read the guide →Guide
DSCR Loans
The loan structure behind most short-term rental financing.
Read the guide →Guide
DSCR Calculator
Long-term rent version of the same coverage math.
Read the guide →Guide
Interest-Only DSCR
Lower fixed payment against seasonal revenue.
Read the guide →Guide
Investment Property Calculator
Full buy-and-hold cash flow and return model.
Read the guide →Guide
DSCR Loan Rates
What moves pricing on a short-term rental file.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
Start My Approval
Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
What are you looking to do?
Pick one — the form adapts.Pick a loan type
Programs for buying a home.Conventional loan — 3–20% down · 620+ FICO
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Business-purpose loans are arranged only in states where we are permitted to do so under applicable licensing requirements or exemptions. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
Follow our reporting
Add Simply Approved Mortgages as a preferred source on Google
We update these guides as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
NMLS Consumer Access: Verify Simply Approved Mortgages LLC, NMLS #2620881.
Simply Approved Mortgages LLC, 633 W 5th St, Ste 2600, Los Angeles, CA 90071 · 877-813-7219 · support@simplyapprovedmortgages.com. State licensing details available at the NMLS Consumer Access link above. © 2026 Simply Approved Mortgages LLC.