Parking lot owners can sell a space as a monthly permit to one regular customer or as daily (transient) parking to many drivers. Monthly parking is steadier and needs less effort, while daily parking can earn more per space but depends on demand.
Use the calculator below to compare the two on the same basis: net income per space per month.
Key Takeaways
- Monthly net per space: (Permit Rate − Cost per Permit) × Share of Time Sold.
- Daily net per space: (Daily Rate − Cost per Sale) × Operating Days × Share of Days Sold.
- Break-even occupancy: The daily sell-through you need to match a monthly permit. Above it, daily wins; below it, monthly wins.
- Trade-off: Monthly parking gives predictable income; daily parking has higher upside but more variation.
- Mix both: Many lots hold a base of permits and keep other spaces for daily or event demand.
Compare Monthly and Daily Parking Profit
Enter your permit and daily parking figures to see which earns more per space.
Monthly Net / Space
$0
Daily Net / Space
$0
More Profitable
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Difference / Month
$0
Break-Even Daily Occupancy
0.0%
How to Compare Monthly and Daily Parking
To compare the two fairly, put both on the same footing: net income per space per month.
Monthly Net = (Permit Rate − Cost per Permit) × Share Sold
Daily Net = (Daily Rate − Cost per Sale) × Operating Days × Share of Days Sold
- Monthly Permit Rate: What one permit holder pays per space each month.
- Permits Sold: The share of time the space is under a paid permit, which accounts for vacancies and turnover.
- Cost per Permit: Billing, decals or access cards, and administration.
- Daily Spaces Sold: The average share of days the space is sold at the daily rate.
- Cost per Daily Sale: Card processing fees, per-transaction software fees, and volume-driven labor.
- Break-Even Daily Occupancy: Monthly net ÷ (operating days × daily margin).
Worked Example
Say a lot sells monthly permits at $150 per space, sold 95% of the time, at $5 in permit costs. Daily parking is $15 per vehicle, sold on 40% of days in a 30-day month, at $1.50 in costs per sale.
Monthly: ($150 − $5) × 0.95 = $137.75 per space
Daily: ($15 − $1.50) × 30 × 0.40 = $162.00 per space
Daily parking earns $24.25 more per space per month, or $485 across 20 spaces. The break-even daily occupancy is $137.75 ÷ (30 × $13.50) = 34.0%. If daily spaces sell on fewer than 34% of days, the monthly permit wins. Try your own figures above.
Factors Beyond the Numbers
- Demand stability: Daily income moves with seasons, weather, events, and local activity, so a low-demand month can hurt results.
- Predictability: Monthly permits provide steady, forecastable income that helps with budgeting and financing.
- Management effort: Daily parking needs more payment handling, signage, and enforcement.
- Location: Lots near offices favor monthly permits; lots near venues, hospitals, or airports may suit daily and event parking.
- Rate flexibility: Daily rates can change quickly with demand, while monthly rates are locked in until renewal.
- A blended approach: Holding a base of permits and selling the rest daily can balance stability and upside.
Frequently Asked Questions
Is monthly parking or daily parking more profitable?
It depends on your rates and how often daily spaces sell. Compare net income per space: monthly rate x share of months sold, minus permit costs, against daily rate x days sold, minus per-sale costs. Daily parking usually earns more per space when demand is strong, while monthly parking gives steadier, more predictable income.
How do you compare monthly and daily parking revenue?
Convert both to the same period, such as net income per space per month. For monthly parking, multiply the permit rate by the share of time it is sold. For daily parking, multiply the daily rate by operating days and the share of days sold. Then subtract costs for each.
What is break-even daily occupancy?
It is the share of days a space must be sold at the daily rate to earn as much as a monthly permit. Above that level, daily parking is more profitable; below it, the monthly permit earns more.
What are the risks of monthly parking versus daily parking?
Monthly parking gives steadier income but caps what a space can earn and may leave you locked into a rate. Daily parking can earn more per space but income moves with demand, weather, events, and seasons, so empty days reduce results.
Can a lot offer both monthly and daily parking?
Yes. Many lots reserve some spaces for monthly permit holders to secure base income and keep the rest for daily or event parking. You can use the calculator to test different splits by comparing the two options per space.