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Short-term rental DSCR calculator: bookings against the payment

Turn nightly rate and occupancy into monthly income, then see DSCR three ways: on gross bookings, on net, and on long-term rent. Plus break-even occupancy and the lenders that take short-term rentals.

Bookings
Use a full year, slow season included.
The loan
A placeholder, not a quote.
What an appraiser's rent schedule would say. Some lenders qualify on this, not on bookings.

Covers on netEven after platform fees, cleaning and utilities, the bookings cover the payment.

DSCR on gross bookings

1.71x

$4,241 a month in bookings against a $2,477 payment.

Nights booked / month
18.8
Gross bookings / month
$4,241
Net of fees, cleaning, utilities
$3,167
Payment (PITIA) / month
$2,477
DSCR on net
1.28x
DSCR on long-term rent
0.85x
Break-even occupancy
36%
Lenders that list short-term rentals as eligible for DSCR loans, with their published DSCR minimum.
Lima One Capital1.30x
Visio Lendingnot published
LendingOne0.75x
New Silver0.75x
Griffin Fundingno minimum
Dominion Financial1.00x
Temple View Capital1.00x
Asset Based Lending1.00x
Compare STR lenders Renting it long term? Check it

Our rental program's published terms do not list short-term rentals as eligible, so ask before you go under contract. The same house as a long-term rental qualifies on the market rent in the last row above.

The method

  1. Nights booked = 30.4 × occupancy. Stays = nights / average stay.
  2. Gross bookings = nights × nightly rate + stays × cleaning fee.
  3. Net = gross less platform fees, less your cleaning cost per stay, less utilities.
  4. DSCR = income / (principal and interest on a 30-year loan + taxes + insurance + HOA), on each of the three incomes.

Insurance on a short-term rental usually costs more than on a long-term one; use a real quote. Compare lender rules in short-term rental DSCR lenders, and check the city's short-term rental rules before you go under contract.

Questions people ask

How do lenders calculate DSCR on an Airbnb?

Three ways, and the lender picks: twelve months of booking history, a projection from a data provider such as AirDNA, or the long-term market rent from the appraisal, ignoring nightly income. The same house can be 1.71x on gross bookings and 0.85x on long-term rent, as in the example, so ask which one before you apply.

What occupancy do I need to break even?

Divide the monthly payment by what one percentage point of occupancy brings in. In the example, $185 a night plus a $120 cleaning fee every three nights earns about $68 per point of occupancy, so the $2,477 payment needs about 36% occupancy on gross bookings.

Why is DSCR on net lower than on gross?

Platform fees, cleaning and utilities come out of every stay. In the example, $4,241 of gross bookings nets $3,167, taking DSCR from 1.71x to 1.28x. Most lenders test gross; your cash flow lives on net.

Can our programs finance a short-term rental?

The published terms of the rental program we arrange do not list short-term rentals as eligible, and the portfolio loan excludes them, so ask before you go under contract. The lenders listed on the calculator publish short-term rentals as eligible. If the house can also work as a long-term rental, we can look at it on that basis.

Numbers look right?

Send the deal. We check it against the lender's terms and come back with a loan.

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