How much can my holiday home earn?

How to calculate what a holiday home earns

A holiday home's return starts from a simple formula — average nightly rate multiplied by the nights actually booked — but the number that matters is what's left after costs. This is where optimistic estimates deflate: between platform commissions, cleaning at every guest turnover, utilities and management, a large share of the gross never reaches the owner's pocket. The calculator above works precisely on this difference, so you see the realistic net and not just the gross takings.

Revenue: average rate and occupancy

Two levers drive short-term rental revenue: the average nightly rate and the occupancy rate. They depend on the area, the season and the quality of the listing. A seaside home can hit 80-90% occupancy in July and August and collapse in winter; a city of art or a business hub spreads occupancy across the whole year. Dynamic pricing, professional photos and positive reviews lift both the rate and occupancy: it's the part of the job where an experienced manager makes the difference.

The costs that erode returns

These are the items that back-of-the-envelope math forgets, and that the calculator subtracts instead:

• Platform commissions: Airbnb and Booking keep on average 15-18% of the stay.
• Cleaning at every turnover: a fixed cost per booking, which weighs more on short stays.
• Utilities and supplies: electricity, gas, water, wi-fi, courtesy products and linen.
• Maintenance and small repairs: to budget every year, not only when they happen.
• Property manager commission: if you delegate management, generally between 15% and 25% of revenue.
• Taxes: the flat-rate tax on short-term rentals is 21% on the first rented property (26% from the second), on top of which come IMU and the handling of the tourist tax.

Net: what really stays

The estimated net is what's left to the owner once variable costs, fixed annual expenses and taxes are removed. It's the number to use to decide whether short-term renting is worthwhile compared with a traditional lease, and to understand how much margin there is to hand management to a professional without losing out.

Direct management or with a property manager?

Doing it yourself keeps the manager's commission, but it requires constant time: always up-to-date listings, prices revised season by season, replies to guests at all hours, check-in, check-out and coordinating cleaning all year round. A good local property manager often pays back their own commission with dynamic pricing and higher occupancy, on top of taking the operational side off the owner's hands. Below a certain revenue threshold, however, managing on your own remains the more convenient choice: it's exactly the comparison this calculator helps you make.

Why the return changes from area to area

There's no average return valid across Europe: the same square footage earns differently in Rome, Barcelona, Lisbon, on the coast or in an inland village. What counts is local tourist demand, seasonality, competition from other listings and the rules of the territory — starting with the tourist licences and registration requirements, which vary by country and region. For an estimate tailored to your property, the next step is to compare notes with a manager who truly knows your area: on Keyo you post your request for free and receive proposals from verified property managers near you.