How much does a tourist home earn per month? The answer is not in the amount presented on Airbnb or Booking nor in the total money received from bookings.
To know how much a property really leaves, one must deduct commissions, cleaning, utilities, maintenance, insurance, taxes, financing, and all other costs of the activity. Only then can we speak of profit.
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A tourist home can generate 3,000, 5,000 euros or more in a month but end up with a much lower profit after paying all its costs.
To calculate how much it really earns, you must analyze the billing, commissions, number of bookings, length of stays, variable expenses, fixed expenses, and financing.
The important figure is not how much money comes in, but how much is left over after paying everything.
Imagine a tourist home receives 4,500 euros in bookings during August. At first glance, it may seem that the owner has earned 4,500 euros.
However, platform commissions, cleaning, laundry, electricity, water, welcome products, repairs, and a proportionate share of annual expenses still need to be paid.
Billing shows what the home sells. Profit shows what it actually earns.
Before crunching numbers, it is advisable to differentiate four concepts that are often mixed up.
Total amount generated by bookings before deducting any costs.
Amount received after commissions, promotions, and discounts.
Result left after deducting all activity expenses.
Money that actually comes in and goes out of the account during the month.
Monthly Profit = monthly income − all monthly expenses
To obtain a real figure, you must also properly allocate annual and extraordinary expenses.
There is no universal monthly amount valid for all accommodations. The result depends on a combination of factors.
Basic monthly revenue can be calculated by multiplying the reserved nights by the average rate achieved.
Monthly revenue = nights sold × average price per night
A property sells 18 nights in a month at an average price of 180 euros.
18 nights × 180 € = 3.240 €
The initial monthly revenue would be 3,240 euros.
You should also add other income received during the stays, such as authorized supplements, additional services, or early check-ins.
The published revenue does not always match the amount received by the owner.
You must deduct:
A reservation may be advertised for 1,000 euros and generate lower income after applying commissions and discounts. The comparison should always be made with the actual amount received.
Variable expenses appear or grow when a stay occurs.
Full preparation of the property after each departure.
Washing and preparing sheets, covers, and towels.
Electricity, water, gas, heating, and air conditioning.
Paper, bags, welcome products, and replacements.
Note: the cleaning cost typically applies per reservation, not per night. Therefore, multiple short stays may prove less profitable than a long stay.
Fixed costs must be paid even if the property does not receive guests.
When these costs are paid once a year, it is advisable to divide them by twelve months to understand their average monthly impact.
Average monthly fixed cost = annual fixed costs ÷ 12
Not every month an appliance breaks down, a room needs painting, or a bed needs replacing. However, these expenses are part of the real cost of accommodation.
If you only deduct the usual bills, the monthly profit may seem greater until a major repair arises.
A prudent way to control this is to create a monthly provision for maintenance, breakdowns, and replacements. This way, the result does not depend on ignoring expenses that have not yet occurred.
When the property is financed, the analysis needs two perspectives.
It takes into account the full payment that leaves the account and shows the money available for the month.
Difference between interest, capital repayment, and other economic elements of financing.
Important: the tax treatment of financing and other expenses depends on the specific situation of the owner and applicable regulations.
This example is illustrative. Each owner should use their own income, expenses, financing, and tax conditions to understand the actual result of their property.
Tourist activity is often affected by seasonality. A summer month, a holiday, or a major event can generate significantly more revenue than a low-demand month.
Therefore, it is useful to distinguish:
Higher demand, better prices, and usually more occupancy.
Moderate demand requiring adjustments to rates and conditions.
Fewer bookings while many fixed expenses continue existing.
The profit from August should not be multiplied by twelve to estimate the annual result. Data from the entire year should be used.
Occupancy influences revenue, but it can also increase expenses. To understand this, let’s look at a simplified example with an average rate of 160 euros.
| Nights sold | Revenue | Observation |
|---|---|---|
| 10 nights | 1,600 € | May be insufficient to cover a high cost structure. |
| 18 nights | 2,880 € | The result will depend on the number of bookings and generated expenses. |
| 25 nights | 4,000 € | High occupancy does not guarantee profit if the price or margin are insufficient. |
Twenty-five nights distributed across five bookings may have different operating costs than the same twenty-five nights spread over ten bookings.
Percentage of available nights that have been sold.
Average price obtained for each night booked.
Income generated for each available night.
Percentage of income that remains after deducting expenses.
Net margin = profit ÷ income × 100
Supplies, travel, products, small repairs, and urgent purchases can accumulate a significant amount over the year.
Responding to messages, coordinating entries, resolving issues, and managing suppliers requires time, even if no invoice appears.
A month without repairs may seem very profitable if no money is set aside for future ones.
The annual result must also include months with lower occupancy and ongoing expenses.
A profitable property can hide the poor results of another if the movements are not properly separated.
Making a profit does not automatically mean that the investment is good.
You must compare the result with:
Gatavia App helps you control income, expenses, bookings, documents, and profitability to understand the real profit of each tourist property.
Calculate how much my property earnsAre you thinking about buying, selling, or investing?
A forecast based solely on listings, apparent occupancy, or estimated revenue can lead to wrong decisions. A financial report analyzes income, costs, profitability, scenarios, and risks before you commit your money.
Request a financial reportIt depends on location, average price, occupancy, and expenses. To find out, you must subtract from the income all commissions, cleaning fees, utilities, fixed costs, maintenance, financing, and applicable taxes.
No. Revenue represents income before deducting expenses. Profit is the amount that remains after all costs are accounted for.
You should consider commissions, promotions, cleaning, laundry, supplies, consumables, maintenance, insurance, fees, professional services, financing, and taxation.
Not necessarily. High occupancy with low prices, many short bookings, or excessive costs can result in lower profits.
It is advisable to analyze both. Monthly control allows you to detect problems, while the annual result captures seasonality, extraordinary expenses, and months with lower demand.
You should analyze the total investment, expected income, all expenses, financing, regulations, risks, and different occupancy and pricing scenarios.
There is no universal amount that a tourist property earns per month. Two accommodations with the same revenue can generate completely different profits.
The only way to know the actual profit is to record all income, deduct all costs, and continuously review the results.
