Short-Term vs Long-Term Rental 2027 Calculator
Compare a short-term rental (nightly lets) with a long-term lease on the same property, using your own figures: nightly rate and occupancy on one side, monthly rent on the other, and the monthly running costs of each. The calculator shows gross income, net income and net income as a percentage of the purchase price. It contains no market data: results are only as good as the numbers you enter.
How the Comparison Works
Long-term gross income is monthly rent × 12. Short-term gross income is nightly rate × 365 × occupancy. Each side's net income is gross income minus twelve months of the expenses you entered. Example with the default figures: long-term $3,000 × 12 = $36,000, less $9,600 of costs = $26,400. Short-term $200 × 365 × 65% = $47,450, less $30,000 of costs = $17,450. The long-term lease is $8,950 a year ahead.
Getting the Inputs Right
Occupancy is the share of nights actually booked across the whole year, including the slow season. Short-term expenses should include cleaning, supplies, utilities, platform fees and any management fee; long-term expenses usually cover maintenance, insurance, property tax and vacancy between tenants. Use figures from comparable listings and your own bills rather than a rule of thumb.
Net Income as a Percentage of Price
The last two percentage figures divide net income by the purchase price. If your expenses exclude financing, this is close to a capitalisation rate; if you include mortgage payments it is not.
What Is Not Included
Income tax treatment differs between short-term and long-term rentals and depends on your own circumstances; see IRS Publication 527 or a tax adviser. Many cities limit or license short-term rentals.
Method: arithmetic on user inputs only. Tax reference: IRS Publication 527, Residential Rental Property. Last updated: October 2026.