How to calculate a break-even nightly rate for your vacation rental
A break-even rate does not predict demand or occupancy. It only tests whether, at a specific number of booked nights and stays, the scenario's revenue covers the costs you included.
The inputs you need
- Booked nights and number of stays.
- The percentage platform fee applied to the amount charged.
- Cleaning charged to the guest and your actual cleaning cost.
- Other costs per night and fixed monthly costs.
Calculation idea: revenue after the platform fee − cleaning costs − other variable costs − fixed costs = scenario operating result.
Monthly example
| Nights / stays | 12 / 4 |
| Platform fee | 15% |
| Cleaning charged / cost | $30 / $35 |
| Other cost per night | $5 |
| Fixed costs | $500 |
| Break-even nightly rate | $58.63 |
|---|
With those same assumptions, a $100 nightly rate produces a $422 operating result before financing and taxes. Recalculate whenever occupancy, the platform fee or any cost changes.
What “break-even rate” does not mean
It is not a market-price recommendation or a booking guarantee. It also excludes taxes, financing and any cost you did not enter. Compare it with actual demand, seasonality and your property's constraints before deciding.