STR vs LTR Cash-on-Cash Comparison Calculator — Rex's Toolbox

Rex says

Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

STR average daily rate($)

STR occupancy rate(%)

STR expense ratio (mgmt, cleaning, supplies, platform fees, utilities)(%)

Comparable long-term monthly rent($)

LTR expense ratio (mgmt, maintenance, vacancy)(%)

Monthly mortgage payment (same for both scenarios)($)

Result

STR net advantage over LTR (annual)

$5,386

STR annual net cash flow

$6,226

LTR annual net cash flow

$840

STR gross annual revenue

$41,866

LTR gross annual revenue

$25,200

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How to use this

1Enter str average daily rate ($).
2Enter str occupancy rate (%).
3Enter str expense ratio (mgmt, cleaning, supplies, platform fees, utilities) (%).
4Enter comparable long-term monthly rent ($).
5Enter ltr expense ratio (mgmt, maintenance, vacancy) (%).
6Enter monthly mortgage payment (same for both scenarios) ($).
7Read your str net advantage over ltr (annual) on the right — it updates as you type.
8Hit Share to keep the scenario or send it to someone.

About this calculator

Short-term rentals can gross meaningfully more revenue than a long-term lease on the same property, but the expense structure is completely different and often erases much of that apparent advantage. STRs carry cleaning costs between every stay, higher furnishing and replacement costs, platform fees (typically 3% for Airbnb hosts, more on some other platforms), dynamic utility costs since you're paying them instead of the tenant, and property management fees that run 20-30% of revenue for full-service STR management versus 8-10% for long-term rental management. This calculator takes your projected STR average daily rate, occupancy rate, and STR-specific expense ratio, and compares net annual cash flow against a straightforward long-term rental scenario on the same property, showing which model actually nets more and by how much. Run this before assuming STR is automatically the higher-return play — in markets with strict short-term rental regulation, high seasonality, or thin STR demand, a well-priced long-term lease with near-zero vacancy and minimal turnover cost sometimes wins on net cash flow despite the lower gross topline.

FormulaSTR gross revenue = ADR × 365 × occupancy%; STR net = STR gross revenue × (1 − STR expense ratio) − mortgage; LTR net = Monthly rent × 12 × (1 − LTR expense ratio) − mortgage.

Worked example

Using the values the calculator loads with:

Inputs

STR average daily rate: 185 $
STR occupancy rate: 62 %
STR expense ratio (mgmt, cleaning, supplies, platform fees, utilities): 45 %
Comparable long-term monthly rent: 2100 $
LTR expense ratio (mgmt, maintenance, vacancy): 30 %
Monthly mortgage payment (same for both scenarios): 1400 $

Results

STR net advantage over LTR (annual): $5,386
STR annual net cash flow: $6,226
LTR annual net cash flow: $840
STR gross annual revenue: $41,866
LTR gross annual revenue: $25,200

What each field means

Inputs

STR average daily rate ($): The str average daily rate used in the calculation, measured in $. Starts at 185 $ so you have a working example on load.
STR occupancy rate (%): The str occupancy rate used in the calculation, measured in %. Starts at 62 % so you have a working example on load. Accepted range: 1–100 %.
STR expense ratio (mgmt, cleaning, supplies, platform fees, utilities) (%): The str expense ratio (mgmt, cleaning, supplies, platform fees, utilities) used in the calculation, measured in %. Starts at 45 % so you have a working example on load. Accepted range: 10–70 %.
Comparable long-term monthly rent ($): The comparable long-term monthly rent used in the calculation, measured in $. Starts at 2100 $ so you have a working example on load.
LTR expense ratio (mgmt, maintenance, vacancy) (%): The ltr expense ratio (mgmt, maintenance, vacancy) used in the calculation, measured in %. Starts at 30 % so you have a working example on load. Accepted range: 5–60 %.
Monthly mortgage payment (same for both scenarios) ($): The monthly mortgage payment (same for both scenarios) used in the calculation, measured in $. Starts at 1400 $ so you have a working example on load.

Results

STR net advantage over LTR (annual): Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
STR annual net cash flow: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
LTR annual net cash flow: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
STR gross annual revenue: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
LTR gross annual revenue: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

What STR expense ratio should I actually expect?

40-50% is typical when using full-service management, cleaning fees, supplies, higher utility bills, and platform fees together; self-managed STRs can run closer to 25-35% but require significantly more of your own time for guest communication, cleaning coordination, and maintenance response.

Does this account for STR regulatory risk?

No — many cities and HOAs have added short-term rental restrictions, licensing requirements, or outright bans in recent years, which is a real risk not captured in a cash flow comparison. Confirm current local zoning and any HOA rules before underwriting a property specifically for STR use, since a regulation change can force a sudden pivot to long-term rental.

How accurate is a single ADR and occupancy assumption?

It's a simplification — real STR revenue is seasonal, often with 80%+ summer occupancy at premium rates and 30-40% winter occupancy at discounted rates in many markets. Pull comparable listing performance data (AirDNA or similar) for month-by-month accuracy rather than relying on a single blended annual assumption.

What about the extra work and liability of STR?

This calculator only measures cash flow, not the meaningfully higher time investment, guest turnover risk, liability exposure, and furnishing capital that STR requires compared to a long-term lease. Factor in your own time value and risk tolerance alongside the pure dollar comparison.

Accuracy and limitations

Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

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Cite this calculator

Writing about this topic? Grab a citation — every link helps keep these tools free.

APA

RevenueLab. (2026). Short-Term Rental vs Long-Term Rental Cash Flow Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/str-cash-on-cash-vs-ltr

HTML

<p>Source: <a href="https://www.revenuelab.fyi/toolbox/str-cash-on-cash-vs-ltr" target="_blank" rel="noopener">Short-Term Rental vs Long-Term Rental Cash Flow Calculator — RevenueLab</a> (2026).</p>

Markdown

Source: [Short-Term Rental vs Long-Term Rental Cash Flow Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/str-cash-on-cash-vs-ltr) (2026).