Free Rental Arbitrage Calculator

Airbnb Arbitrage Calculator

Airbnb rental arbitrage means leasing a property long-term and relisting it on short-term platforms at a higher nightly rate. The profit is the spread between what you pay the landlord and what guests pay you. Enter your lease cost and nightly rate below to see your real arbitrage profit, break-even occupancy and startup costs instantly.

Monthly Profit

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Break-Even Occ.

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Arbitrage Margin

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Startup Capital

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Lease Details what you pay the landlord

Monthly Rent / Lease Payment ($)

your fixed obligation to the landlord

Security Deposit ($)

typically 1–2 months rent

Furniture & Appliances ($)

one-time setup cost

Supplies, Linens, Photography ($)

initial stock and listing setup

Operating Reserve ($)

buffer for slow months — recommended 2–3 months rent

Startup Capital Required total cash to launch the arbitrage

Security Deposit

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First Month Rent

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Furniture & Appliances

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Supplies, Linens & Photos

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Operating Reserve

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Annual Lease Exposure

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Total Startup Capital

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STR Revenue what guests pay you

Average Daily Rate (ADR)

nightly rate on Airbnb / platform

Available Nights per Month

nights listed

Expected Occupancy (%)

realistic estimate — not best-case

Bookings per Month

number of separate guest stays

Platform Fee (%)

Airbnb host fee ~14–16%

Cleaning Cost per Booking ($)

per guest turnover

Other Fixed Costs / Month on top of rent

Utilities

$1,320/yr

Internet

$600/yr

STR Insurance / Liability

$960/yr

Restocking / Maintenance

$720/yr

Total Fixed (excl. rent)

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Tax

Income Tax Rate (%)

your marginal rate on arbitrage profit

Arbitrage Results

Revenue vs Cost Spread

STR Revenue: —

All Costs: —

Profit Spread: —

Monthly Arbitrage Profit (After Tax)

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Break-Even Occupancy

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Your Occupancy

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Gross STR Revenue

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Platform Fee

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Cleaning Costs

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Monthly Rent / Lease

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Other Fixed Costs

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Pre-Tax Profit

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Understanding Airbnb Arbitrage

How rental arbitrage works — and where it breaks

Rental arbitrage is appealing because it removes the largest barrier to STR investing — you don't need to own property. A $10,000–$15,000 startup budget can get you operating, versus $80,000–$120,000 for a down payment on a property purchase.

The risk is equally asymmetric. With a property purchase, a slow month reduces your return. With rental arbitrage, a slow month comes out of your pocket — the lease payment is due regardless of occupancy. This makes break-even occupancy the single most important number in any arbitrage deal. If break-even is above 65%, you are one slow month away from a loss.

The math needs to work at realistic occupancy — not the listing's best-case. A new Airbnb listing typically operates at 60–70% of its eventual mature occupancy for the first 3–6 months while reviews accumulate. Model your first six months conservatively.

Airbnb Arbitrage Formula

Gross STR Revenue = ADR × (Available Nights × Occupancy%)

Net STR Revenue = Gross × (1 − Platform Fee%)

Variable Costs = Cleaning × Bookings per Month

Total Fixed Costs = Monthly Rent + Utilities + Internet + Insurance + Maintenance

Arbitrage Profit = Net STR Revenue − Variable Costs − Total Fixed Costs − Tax

Break-Even Occ. = Total Fixed Costs ÷ (ADR × (1 − Platform Fee%) − Cleaning per Booking) ÷ Available Nights

FAQ

Common questions about Airbnb arbitrage

What is Airbnb rental arbitrage?

Airbnb rental arbitrage is the practice of leasing a property long-term and subletting it on Airbnb or other short-term rental platforms at a higher nightly rate. The profit is the spread between what you pay the landlord monthly and what guests pay per night. It requires explicit landlord permission and a lease clause allowing subletting.

How do I calculate Airbnb arbitrage profit?

Airbnb arbitrage profit = (ADR × Occupied Nights × (1 − Platform Fee%)) − (Cleaning Cost × Bookings) − Monthly Rent − Other Fixed Costs − Income Tax. The key number to model first is break-even occupancy — the minimum occupancy at which STR revenue covers your lease and all other costs. Use the calculator above to find yours instantly.

Is Airbnb arbitrage legal?

Airbnb arbitrage is legal when you have explicit written permission from your landlord to sublet the property on short-term rental platforms. Many standard leases prohibit subletting, so you need a lease that allows it or a specific written addendum. Local STR regulations also apply — some cities require licenses or limit nights per year. Always check both your lease and local law before starting.

How much does it cost to start Airbnb arbitrage?

Startup costs for Airbnb arbitrage typically range from $8,000 to $15,000 and include: security deposit (1–2 months rent), first month rent, furniture and appliances ($3,000–$8,000 depending on unit size), kitchen supplies and linens ($500–$1,500), professional photography ($200–$500), and a 2–3 month operating reserve. The calculator above shows your specific startup number based on your inputs.

What break-even occupancy do I need for Airbnb arbitrage?

For Airbnb arbitrage to be viable, break-even occupancy should ideally be below 55–60%. This means at that occupancy rate your STR revenue fully covers rent, cleaning, platform fees and all other costs. If break-even is above 70%, the deal is fragile — a single slow month produces a loss and you remain personally liable for the full lease regardless of how many guests you have.

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