Rental Arbitrage Profit Calculator

Rental arbitrage means renting a property long-term and subletting it short-term (only where your lease and local law allow it). Plug in the numbers to see monthly profit and how long it takes to earn back furnishing costs.

How the calculation works

Booked nights = 30 × occupancy; stays = nights ÷ average stay.

Net revenue = (ADR × nights + cleaning fee × stays) × (1 − platform fee). Profit = net revenue − rent − bills − other − cleaning cost × stays. Payback = setup ÷ monthly profit.

Worked example

65% of 30 = 19.5 nights, 6.5 stays. Revenue (€2,145 + €325) × 0.85 = €2,099.50. Costs €1,500 + €250 + €60 + €292.50 = €2,102.50. Profit = −€3.00/month: at these numbers the deal doesn't work. Raising ADR to €125 gives about +€245/month and a 24-month payback.

Track all of this every month, not just once

The calculator above is a one-off snapshot. The STR Host Toolkit is a 16-tab Excel & Google Sheets workbook that does it for up to 5 properties: profit per property after platform fees, VAT and tourist tax, occupancy that ignores owner stays, a 365-night calendar with double-booking flag, Airbnb vs Booking net comparison, ROI (cap rate, cash-on-cash, DSCR), break-even rate, cleaning-fee calculator, a turnover checklist and guest message templates.

Get the free profit sheet Get the full toolkit — €29

One-time purchase, instant download via Gumroad.

FAQ

Is rental arbitrage legal?

It depends on your lease and your city's short-term rental rules. Get written landlord permission and check registration and night caps before signing.

What occupancy should I assume?

Be conservative. Use local market data and model a low season month; arbitrage margins are thin and a few empty nights can erase profit.

What's a good payback period?

Many operators look for setup costs to be recovered well within the lease term, ideally in the first year.