Money
The five numbers every host should know
Gross revenue, expenses, net operating income, revenue per booked night and break-even — what each one tells you.
7 min read · Updated 20 August 2026
Plenty of hosts know their nightly rate and their monthly payout and nothing in between. These five figures, recalculated every month, tell you whether the rate is right and how much room you have before the property stops paying for itself.
1. Gross revenue
Nightly rate multiplied by booked nights, plus cleaning fees collected. This is the number platforms show you and the number that flatters you most — it is a starting point, not a result.
2. Total expenses
Everything that leaves: mortgage or rent, utilities, internet, insurance, what you pay cleaners, platform commission, consumables, maintenance and the annual costs divided by twelve. The last part is where most calculations go wrong — boiler services, deep cleans and replacement mattresses are real monthly costs even when they arrive once a year.
3. Net operating income
Gross revenue minus expenses. If it is positive, the property covers itself on this month's occupancy. Track it across a full year before drawing conclusions — a strong summer can hide four unprofitable winter months.
4. Revenue per booked night
Gross revenue divided by booked nights. It reveals what fees and discounts are really doing. A host advertising £120 a night who offers weekly discounts and absorbs a platform fee may be earning closer to £95 — and that is the number to compare against costs.
5. Break-even booked nights
Total monthly costs divided by revenue per booked night. It converts an abstract budget into one memorable target: the number of nights you must sell before the month turns a profit. It also tells you instantly whether a rate change is worth it — if a £10 increase drops your break-even from 14 nights to 12, that is a stronger argument than any occupancy forecast.
Treat every projection as an estimate
These calculations use the numbers you enter and nothing else. They do not account for tax, seasonality, cancellations, vacancy or local short-term-rental regulation. Use them to compare scenarios, not to make commitments — and take tax and financial advice from a qualified professional.
Do it now