Airbnb
Compare the net annual income of Airbnb (short-term rental) vs traditional long-term rental for the same property. Includes break-even occupancy analysis.
28% Cat. F (arrendamento). Regime simplificado: 35% da renda.
25% Cat. B (AL). Regime simplificado: coef. 0.35 sobre receitas.
Occupancy needed for Airbnb to match LTR net income
Deal Score
Good Deal
This calculator helps real estate investors and prospective buyers compare the potential net income from operating a property as an Airbnb short-term rental versus a traditional long-term rental. It's crucial for making informed investment decisions by quantifying the financial implications of each strategy, considering various income streams and expenses specific to both models. Use this tool to understand which rental approach maximizes your property's profitability based on your specific market conditions and operational preferences.
Input Property Details
Enter the property's purchase price, estimated market value, and any renovation costs. These foundational figures establish the asset's cost basis and are essential for calculating potential returns and depreciation, influencing overall profitability.
Estimate Long-Term Rental Income & Expenses
Provide the expected monthly rent, vacancy rate, and typical long-term rental expenses such as property management fees (e.g., 8-12% of gross rent), maintenance, and insurance. Accurate estimation of these factors is critical for a realistic assessment of traditional rental profitability.
Estimate Airbnb Income & Expenses
Input the average daily rate (ADR), estimated occupancy rate, and specific short-term rental expenses like cleaning fees, platform commissions (e.g., 3-5% for hosts), higher utility costs, and specialized insurance. These inputs directly impact the gross revenue and operational costs unique to the short-term rental model.
Account for Financing & Taxes
Include details on your mortgage (loan amount, interest rate, term) and estimated property taxes. These fixed costs significantly affect net income for both scenarios and must be accurately reflected to determine true cash flow and return on investment.
Compare Net Income & Key Metrics
The calculator will then present a side-by-side comparison of the estimated net annual income for both Airbnb and long-term rental scenarios. This final step allows you to evaluate which strategy offers a higher financial return and aligns better with your investment goals.
For a short-let in Braga, Portugal, compare a 240 000 € property with its local nightly rate, occupancy and licensing costs.
The outcome is sensitive to local demand, licence rules and seasonality.
Airbnb typically beats long-term rental when: (1) the property is in a high-demand tourist area with 60%+ occupancy, (2) the nightly rate is at least 2-3× the daily equivalent of monthly rent, and (3) local regulations allow short-term rentals.
Airbnb has higher operational costs: cleaning between stays, higher maintenance due to more frequent use, more insurance, and property management fees of 15-25% if you use a manager. Long-term rental is more passive but has lower gross income.
Break-even occupancy is the minimum Airbnb occupancy rate at which the net income equals the long-term rental net income. If your expected occupancy is above this threshold, Airbnb is more profitable. Below it, long-term rental wins.
