Holiday-let break-even

How many bookings do I need to break even?

Break-even turns a vague income target into a practical question: how many bookings, weeks or occupied nights does this property need before it stops costing you money?

The straight answer

Start with the annual costs you need to cover, then divide by the average revenue you keep from a booking. Use net booking value after relevant booking costs where possible, and repeat the calculation for a lower-demand case.

Add the annual costs first

Include every predictable cost of owning and operating the property: annual site fees or ground rent, utilities, insurance, maintenance, licences or compliance, marketing, software, finance costs and a realistic allowance for repairs.

Then separate costs that happen with each booking, such as cleaning, linen, laundry, payment charges, platform fees and management commission. If guests pay a cleaning fee, be clear whether it fully covers your changeover cost.

Use the average booking value you keep

A £900 customer booking is not always £900 toward annual costs. If a platform takes a percentage, management is charged, or the stay has a direct cost that is not recovered, use the amount left after those deductions.

For properties with a mix of week-long stays, weekends and short breaks, calculate an average from your intended booking mix rather than using a single peak-week price.

Translate the result into the calendar

The same break-even total can feel very different depending on the season. Twelve bookings could be manageable for a property that can sell 40 strong weeks, but demanding if the site is closed for much of the year or you keep the best dates for personal use.

Look at break-even as revenue, bookings, occupied weeks and occupancy. If each view points to a demanding target, the property needs more caution.

Illustrative estimate

The basic calculation

A simplified example using estimated annual costs and net booking value.

Annual costs to cover: £12,500
Average net booking value: £800
£12,500 ÷ £800: 15.6
Approximate break-even bookings: 16

This calculation does not predict demand. It shows the amount of booked value the property needs before any owner surplus. Use actual or carefully stated assumptions for each property.

See the numbers for the property you are considering.

BUKDup Check keeps assumptions visible and helps you test the costs, bookings and questions that matter for one property.

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