Airbnb / Holiday Rental Calculator
Work out what a holiday let or Airbnb actually earns after platform fees, cleaning, and maintenance — and, crucially, what HMRC takes. This profit is taxable property income, and since the Furnished Holiday Lettings regime ended in April 2025, mortgaged holiday lets are taxed under the same Section 24 rules as standard buy-to-let.
UK whole-property Airbnbs typically run 50–70%
Used to estimate the number of cleaning turnovers
Airbnb host fee ≈3%; Vrbo/Booking.com often 8–15%
Electricity, water, broadband, council tax on a 2nd home
Insurance, licensing, listing/management software
0 if owned outright
Where the income goes (annual)
Income & cost breakdown
| Line | Annual | Notes |
|---|---|---|
| Accommodation revenue (219 nights × £120.00) | £26,280.00 | |
| Cleaning fees collected (73 stays) | £3,650.00 | |
| Total receipts | £29,930.00 | |
| Platform / host fees | −£788.40 | |
| Cleaning costs | −£4,380.00 | |
| Maintenance allowance | −£1,314.00 | |
| Utilities & bills | −£1,800.00 | |
| Other costs (insurance, licensing etc.) | −£800.00 | |
| Net operating income | £20,847.60 | 10.4% yield |
| Pre-tax profit | £20,847.60 |
All Airbnb and holiday-let profit counts as taxable UK property income and must be reported via Self Assessment, even if the platform does not send you a tax form. The Furnished Holiday Lettings regime — which once let owners deduct mortgage interest in full — ended on 6 April 2025; holiday lets are now taxed under the same Section 24 rules as standard buy-to-let. Figures assume the income falls entirely within your current tax band.
How this calculator works
Nights booked is occupancy % applied to 365 nights; dividing by the average stay length estimates the number of guest turnovers, which drives the cleaning cost and cleaning fee income lines. Accommodation revenue (nightly rate × nights booked) and cleaning fees collected from guests make up total receipts. Platform fees, actual cleaning costs, a maintenance allowance, utilities, and other annual costs are then deducted to give the net operating income — the figure most useful for comparing properties via yield.
If the property is mortgaged, annual interest is deducted to reach a pre-tax profit, but the tax charge itself follows Section 24: the net operating income (not the profit after interest) is taxed at your marginal rate, with a 20% credit applied against the interest. This is the same rule that applies to standard buy-to-let — holiday lets lost their more generous FHL tax treatment from 6 April 2025.
Worked example
A £200,000 property let at £120/night with 60% occupancy and a 3-night average stay, no mortgage:
- Nights booked: 219/yr across 73 stays
- Total receipts: £29,930/yr
- Net operating income: £20,848/yr (10.4% net yield)
- Basic-rate owner: tax £4,170 → post-tax profit £16,678/yr
- Higher-rate owner: tax £8,339 → post-tax profit £12,509/yr
Frequently asked questions
Is Airbnb and holiday-let income taxable in the UK?
Yes. Any profit from letting a property on Airbnb or similar platforms is taxable UK property income and must be declared on a Self Assessment tax return, even if Airbnb does not send you a tax form. The only exception is the £1,000 property income allowance — if your total gross property income for the year is below £1,000, you don't need to report or pay tax on it. Above that, the full profit is taxable at your marginal rate.
What happened to Furnished Holiday Lettings (FHL) tax relief?
The FHL regime — which let qualifying holiday-let owners deduct mortgage interest in full, claim capital allowances on furniture, and access certain Capital Gains Tax reliefs — was abolished from 6 April 2025. Holiday lets are now taxed exactly like standard residential buy-to-let, including Section 24, which restricts mortgage interest relief to a 20% basic-rate tax credit regardless of your own tax band.
How does Section 24 affect a mortgaged holiday let?
Section 24 means the full net operating income — not the profit left after mortgage interest — is taxed at your marginal rate, with only a 20% credit applied against the interest itself. On the default example, a higher-rate owner pays £8,339 in tax against a pre-tax profit of £20,848, leaving £12,509 after tax. The more leveraged the property, the bigger the gap between pre-tax and post-tax profit.
What expenses can I deduct from holiday-let income?
Letting agent and platform fees, cleaning and turnover costs, maintenance and repairs, utilities, insurance, council tax (on a second home), and management software are all deductible against rental income. Mortgage interest is restricted under Section 24 (a 20% credit only). Keep receipts — HMRC can ask for evidence of any expense claimed.
Do I need to register for Self Assessment for Airbnb income?
If your gross property income (before expenses) exceeds £1,000 in a tax year, you need to register for Self Assessment and report it, even if expenses mean you make little or no profit. HMRC receives data directly from platforms like Airbnb under UK and OECD reporting rules, so undeclared income is increasingly easy for them to spot.