Airbnb Mortgage Calculator
Airbnb Income & Mortgage Results
Gross Annual Rental Income-
Management Fees-
Running Costs (annual)-
Net Annual Income-
Monthly Mortgage Payment-
Monthly Cash Flow-
Gross Yield-
UK Airbnb Nightly Rate Guide 2025/26
| Location | 1-Bed Avg | 2-Bed Avg | 3-Bed Avg | Occupancy |
|---|---|---|---|---|
| London Zone 1-2 | £120-£180 | £160-£250 | £200-£350 | 70-80% |
| Major Cities | £70-£120 | £90-£160 | £120-£220 | 60-75% |
| Coastal/Tourist Areas | £80-£130 | £100-£180 | £130-£250 | 50-70% |
| Rural / Countryside | £60-£100 | £80-£140 | £100-£200 | 40-60% |
Airbnb Cost Considerations
Airbnb Commission
3% host fee
Cleaning/Turnover
£30-£80/stay
Utilities Uplift
+50-100%
Insurance
£300-£600/yr
Furniture/Setup
£3,000-£10,000
Tax-Free Allowance
£1,000/yr
How to Use This Calculator
1
Enter property value and deposit
Input the purchase price and your deposit amount. BTL mortgages typically require a minimum 25% deposit.
2
Set mortgage terms
Enter the expected interest rate and term. Holiday let mortgages are typically 5-6% in 2025/26.
3
Enter income estimates
Input your expected average nightly rate and occupancy percentage based on comparable properties.
4
Add costs and management
Enter monthly running costs and select whether you will self-manage or use a management company.
5
Review profitability
The calculator shows gross income, net income, mortgage payments, monthly cash flow, and gross yield.
Frequently Asked Questions
Can I get a mortgage for an Airbnb property?
Most standard BTL mortgages do not permit short-let use. You need a specialist holiday let mortgage or a consent-to-let from your lender. Holiday let mortgage rates are typically 0.5-1% higher than standard BTL. Some lenders such as The Cumberland, Hodge, and Kent Reliance offer specific holiday let products.
How much can I earn from Airbnb in the UK?
Earnings vary hugely by location. A 2-bed property in a major UK city averaging £100/night at 65% occupancy would gross approximately £23,700/year. After costs (management, cleaning, utilities, insurance, Airbnb commission), net income is typically 50-65% of gross. Some premium properties earn £50,000+ per year.
What are the tax rules for Airbnb income?
If you let your primary home, the Rent a Room scheme gives you £7,500 tax-free. For separate properties, the £1,000 trading allowance applies. Beyond these, Airbnb income is taxable as either property income or trading income. If your property qualifies as a Furnished Holiday Let (FHL), you may be able to claim capital allowances on furniture.
What is the 90-day rule in London?
In London boroughs, entire properties can only be let on short lets for a maximum of 90 nights per calendar year without planning permission. This applies to residential properties used as short-term lets on platforms like Airbnb. Exceeding 90 days without permission is a planning breach and can result in enforcement action.
What insurance do I need for Airbnb?
Standard home insurance does not cover short-let use. You need: specialist short-let landlord insurance, public liability insurance (minimum £2 million), and contents insurance for furnished property. Airbnb provides AirCover for hosts which includes £1 million damage protection, but this has exclusions and should not replace proper insurance.
What is a good gross yield for Airbnb?
Gross yields of 8-15% are achievable with Airbnb in good locations, compared to 4-7% for traditional long-term BTL. However, Airbnb involves higher running costs, more management time, and income volatility. Net yields after all costs are typically 4-8% for well-managed properties.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.