Airbnb & VRBO · break-even occupancy · free
Short-Term Rental ROI Calculator Canada
With Canadian cap rates compressed, some investors turn to short-term rentals for yield. Model it honestly — the 15.5% host fee, cleaning, management, furnishing, and the occupancy you need to break even.
Educational calculators — always consult a licensed professional before making financial decisions.
The acquisition price of the property.
What you charge per night, averaged across the year.
US short-term rentals averaged roughly 50–54% in 2025.
Typically 20%+ for a non-owner-occupied property.
Investment property rate.
One-time. Counts toward your invested cash.
Airbnb's host-only fee has been 15.5% since October 2025.
Full-service STR managers typically charge 20–25% of revenue.
What cleaning costs you AFTER the cleaning fee you charge guests.
Shorter stays mean more turnovers and more cleaning cost.
Hosts pay these on an STR — tenants pay them on a long-term rental.
Toiletries, coffee, paper goods, linen replacement.
Annual. Note STR insurance costs more than a standard landlord policy.
What this property would fetch as a normal rental — for comparison.
Adds to your invested cash.
25-year terms are typical.
Break-Even Occupancy
94%
You modelled 55% · annual revenue $52,195
Revenue & Expense Stack
Pre-tax. Excludes local lodging/occupancy taxes, which vary by city — check your local rules, as many municipalities also restrict or permit-gate short-term rentals. LTR comparison assumes tenant-paid utilities and 9% management. Estimate only; consult a licensed professional.
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Short-term rentals as a yield play in Canada
Canadian long-term rentals are yield-poor — national multifamily cap rates sit near 4.4%, and Toronto/Vancouver closer to 3.5–4.5% — so short-term renting is often pitched as the fix. Sometimes it is. But an Airbnb is a hospitality business, not a passive rental: revenue is ADR × 365 × occupancy, and much of the cost scales with every booking.
Model it properly. Airbnb's host-only fee has been about 15.5% since 27 October 2025 (replacing the old ~3% host share), full-service STR management runs 20–25% of revenue versus 8–12% for long-term, and as host you pay the utilities a tenant would otherwise cover. Furnishing is real cash before your first guest and belongs in your cash-on-cash denominator.
Regulation is the live risk in Canada. Several major Canadian cities have introduced principal-residence requirements, licensing regimes, and restrictions on short-term rentals, and the rules keep moving. A property that only pencils as an STR carries policy risk a long-term rental doesn't. That's exactly why this calculator shows break-even occupancy and a direct comparison against the same property as a conventional rental — check your municipality's current rules before you commit.
How it works
Enter rate and occupancy
Average daily rate and expected share of nights booked.
Add STR-specific costs
Platform fee, management, cleaning, utilities, supplies, furnishing.
Check break-even
See break-even occupancy and the long-term rental comparison.
Short-term vs long-term rental: the cost differences
| Cost | Short-term rental | Long-term rental |
|---|---|---|
| Platform fee | ~15.5% (Airbnb host fee since Oct 2025) | None |
| Management | 20–25% of revenue | 8–12% of rent |
| Utilities | Host pays | Tenant usually pays |
| Furnishing | Large one-time cost | None (unfurnished) |
| Regulatory risk | High — many cities restrict STRs | Low |
Several Canadian cities have principal-residence rules and licensing regimes for short-term rentals. Confirm your municipality's current rules before committing.
Frequently asked questions
What is break-even occupancy and why does it matter?+
Break-even occupancy is the percentage of nights you must book for the property to cover all its costs — mortgage, taxes, insurance, utilities, supplies, plus the variable platform, management, and cleaning costs. It's the most useful number in short-term rental analysis because it converts a pile of assumptions into a single testable threshold. If your break-even is 62% and comparable listings in your area run 50–55% occupancy, the deal doesn't work no matter how attractive the ADR looks.
What does Airbnb charge hosts?+
Airbnb moved to a single host-only fee model on 27 October 2025. Hosts now pay approximately 15.5%, deducted from payouts, and guests are no longer charged a separate platform service fee. This replaced the older split model where hosts paid roughly 3% and guests paid the rest. Because the fee is now a much larger share of host revenue, it materially affects short-term rental returns — older calculators using a 3% assumption will significantly overstate your income.
Why does furnishing cost belong in the return calculation?+
Furnishing is real cash out of your pocket before a single guest arrives — furniture, linens, kitchenware, electronics, photography, smart locks. It's the cost long-term-rental investors never face. Because cash-on-cash return divides annual cash flow by total cash invested, leaving furnishing out of the denominator inflates your apparent return. This calculator includes it alongside your down payment and closing costs.
What occupancy should I assume?+
US short-term rentals averaged roughly 50–54% occupancy in 2025, down from about 57% in 2024 as supply grew; mature markets typically run 50–70%. But citywide averages hide huge variation — occupancy depends on your specific neighbourhood, property type, and how actively you manage pricing. Use comparable active listings near you rather than a national number, and remember ADR and occupancy trade off against each other.
Why is short-term rental management so much more expensive?+
Full-service short-term rental managers typically charge 20–25% of revenue, versus 8–12% for a long-term rental. The work is genuinely different: guest communication, dynamic pricing, turnover coordination, restocking, and round-the-clock support. Even if you plan to self-manage, it's worth modelling a management fee — a deal that only works because you do the labour yourself is more fragile than it appears, and it caps how far you can scale.
Is a short-term rental always better than a long-term rental?+
No. Short-term rentals can generate more gross revenue, but they carry higher costs (platform fees, management, cleaning, utilities, furnishing), far more workload, more income volatility, and real regulatory risk — many cities restrict, permit-gate, or ban short-term rentals, and rules change. This calculator compares your projected short-term cash flow directly against the same property as a conventional rental so you can see whether the premium actually justifies the extra risk and effort.
Run your next deal through the numbers.
Back to the calculator ↑Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.