Quick answer
Rental arbitrage means leasing a property long-term and letting it short-term, keeping the spread. This calculator prices that spread: at a $150 average daily rate and 70% occupancy, a unit grosses $3,150 a month; after $1,800 of rent, utilities, platform fees, cleaning and supplies, the margin is about $361 a month — 11.4% of revenue. But on Airbnb's 15.5% host-only fee, the same unit loses about $33 a month.
How the Airbnb Arbitrage Margin works, step by step
Enter the average daily rate (ADR), expected occupancy, average stay length, platform fee, your monthly housing costs (rent, utilities) and per-turnover costs (cleaning, supplies). The calculator converts ADR and occupancy into monthly revenue — ADR × 30 nights × occupancy — then charges turnovers based on the average stay, and reports RevPAR, the revenue per available room.
The platform fee is the input that changed most in 2026. Airbnb is moving hosts from the split fee — 3% from the host, with guests paying a separate 14.1% to 16.5% — to a single host-only fee of 15.5% for most hosts, mandatory for listings connected through property management software since October 2025 and rolling out to other hosts through late 2026. Check your account's setting before entering a fee.
Turnover costs are what new operators miss. A 3-night average stay at 70% occupancy means 7 cleans a month. The calculator treats cleaning as a pure cost: if you charge guests a cleaning fee, that income is not modelled, so add it to the profit yourself. Note the fee also applies to cleaning fees you charge, since Airbnb's fee is levied on the booking subtotal, not just the nightly rate.
Read the margin as a percentage and in dollars, then stress occupancy down 15 points. Short-term demand is seasonal in most markets; the rent is not. A unit that profits at 70% occupancy and loses at 55% needs either a lower rent, a higher ADR market, or a reserve to survive the weak season — and the calculator's owned-property mode lets you run the same numbers with PITI and HOA instead of rent.
The owned mode changes the decision, not the arithmetic. If you own the unit, the housing line becomes your monthly PITI plus HOA, and the profit is measured against a mortgage you would pay anyway — but the same occupancy and fee sensitivity applies, and the furnishing cost still has to be recovered from the margin before the unit is genuinely profitable.
The formula
Monthly revenue = ADR × booked nights, where booked nights = 30 × occupancy %. Turnovers = booked nights ÷ average stay. Profit = revenue − (platform fee % × revenue) − (cleaning cost × turnovers) − housing − utilities − supplies. Margin = profit ÷ revenue. RevPAR = ADR × occupancy %.
Worked example — try it on the calculator above
Worked example: $150 ADR, 70% occupancy, 3-night average stay
Booked nights: 21 a month. Gross revenue: $150 × 21 = $3,150. Platform fee at 3%: $94.50. Turnovers: 21 ÷ 3 = 7 cleans × $75 = $525. Supplies and restocking: $120. Housing: rent $1,800 and utilities $250. Profit = $3,150 − $1,800 − $250 − $94.50 − $525 − $120 = $360.50, an 11.4% margin. Switch the platform fee to Airbnb's 15.5% host-only rate and the fee becomes $488.25 — the month turns into a $33.25 loss. Drop occupancy to 55% at the 3% fee and the same cost base loses about $182.
Frequently Asked Questions
Is rental arbitrage legal?
It depends on three layers: your lease must permit subletting or short-term rental use (get the landlord's written consent — most standard leases prohibit it), local law may require a short-term rental permit or ban the activity in some zones, and platforms and buildings may impose their own rules, including annual night caps. Verify all three before signing a lease for this purpose.
What occupancy rate should I assume?
Use the market's actual data, not the listing's best month. Mature leisure markets often run 55% to 70% annual occupancy; urban business markets vary with events and season. Annualise: a unit at 85% in peak season and 40% off-season averages near 60%, and the annual figure is the one that has to cover 12 months of rent.
What does Airbnb charge hosts in 2026?
Two structures exist. Under the split fee, most hosts pay 3% and guests pay a separate 14.1% to 16.5% of the booking subtotal. Under the host-only fee, most hosts pay 15.5% — some 14% to 16% — and guests pay nothing extra. Airbnb is moving home hosts to the single fee through late 2026; once you switch, you cannot switch back. The fee applies to the subtotal including cleaning fees.
What costs does this calculator not capture?
Furnishing and setup (commonly $10,000 to $30,000 for a quality unit, amortised over its life), insurance suitable for short-term letting (a standard landlord policy may not cover it), income taxes, and your own management time. Price the setup cost into the decision: at the example's $361 a month, an $18,000 setup takes about 50 months to recover.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.