Airbnb / Short-Let ROI Calculator 2025/26
Calculate the net yield from a UK short-term rental property after all costs — Airbnb host fee, cleaning, council tax or business rates, insurance, maintenance, mortgage or opportunity cost. Understand your true annual net income and break-even occupancy rate.
Key Inputs
- Property value (£) or monthly mortgage/opportunity cost (£)
- Annual council rates/bills (£)
- Annual landlord insurance (£)
- Annual maintenance budget (£)
- Average nightly rate (£)
- Target occupancy rate %
- Airbnb host service fee % (typically 3%)
- Cleaning fee per stay (£) and average stay length (nights)
What You'll Get
- Annual gross rental income
- Annual Airbnb commission and cleaning costs
- Annual net operating income
- Net yield % on property value
- Break-even occupancy rate
- Monthly net profit/loss
Important Notes — 2025/26 Rates & Caveats
Airbnb UK host service fee: 3% of booking subtotal for most hosts under the split-fee model — guests pay a separate service fee up to 14.2%. London 90-day limit: properties let for more than 90 nights/year as short-term accommodation require planning permission under the Deregulation Act 2015. Income tax: Airbnb income is taxable — the property income allowance (£1,000) or rent-a-room relief (£7,500 for letting a room in your main home) may apply. Business rates rather than council tax apply once a property is let for 140+ days/year and available for letting for 140+ days.
Frequently Asked Questions
What commission does Airbnb charge UK hosts?
3% of the booking subtotal for most hosts under the split-fee model — guests also pay a separate service fee of up to 14.2% of the booking subtotal. Some hosts using the host-only fee model (where the host pays all fees) pay 14–16% with no guest fee — this model is sometimes preferred for Airbnb Plus and hotels. The 3% host fee is deducted from each payout automatically.
Is there a limit on short-term lets in London?
Yes — properties let as short-term accommodation for more than 90 nights per year require planning permission in London under the Deregulation Act 2015. Airbnb automatically limits London entire-home listings to 90 nights per year unless the host provides proof of planning permission. Outside London, planning rules vary by local authority — an increasing number of councils are implementing Article 4 directions to restrict short-term lets in popular tourist areas.
Do I pay income tax on Airbnb income?
Yes — Airbnb income is taxable. The property income allowance (£1,000/year) covers the first £1,000 of property income gross. If you let a room in your own home, rent-a-room relief allows the first £7,500 of gross room rental income to be tax-free. Above these thresholds, income must be declared via Self Assessment. Allowable deductions include mortgage interest (restricted to 20% tax credit for residential properties), letting agent fees, insurance and maintenance costs.
Related Calculators
Use the interactive Airbnb / Short-Let ROI Calculator
Run real numbers instantly — free, no sign-up required.
Go to Hospitality Calculators