Vacation Rental
Profitability Calculator

Profitability varies widely by location, property type and management model. In major cities (Lisbon, Porto) and beach destinations (Algarve), gross yields between 6% and 12% are common for well-positioned properties with active management. The national average occupancy rate for professionally managed short-term rentals is around 65–75%. Properties in high tourist demand areas with dynamic pricing can exceed 80% occupancy in peak season. Read the detailed analysis in our article short-term rental vs traditional renting.

Gross yield is the annual gross revenue divided by the property's market value (e.g. €24,000 revenue / €300,000 property = 8% gross yield). Net yield deducts all operational costs, fixed costs and taxes — it is the real return on capital invested. The difference between the two reflects your property's cost structure; a property with low costs can have a net yield close to the gross, while one with many fixed costs may have a net yield 40–50% lower than the gross.

Self-management eliminates the management commission (typically 15–25%), but requires significant dedication: check-ins, guest communication, cleaning management, maintenance and pricing optimisation. Professional management typically pays off through: higher occupancy rate (access to dynamic pricing tools), better platform positioning, and complete elimination of owner time. For most owners with a job or multiple properties, professional management results in net income equal or higher than self-management, with less stress. Learn more at is it worth hiring a vacation rental management company.

The occupancy break-even is the minimum rate of nights rented needed to cover all costs (before taxes). It is calculated as: annual fixed costs ÷ (net revenue per night − cleaning cost per night). For example: annual costs of €8,000, net revenue per night of €85 and cleaning cost per night of €15 → break-even = €8,000 ÷ €70 ≈ 114 nights ≈ 31% occupancy (out of 365 nights). The calculator computes this value automatically.

In most urban and tourist markets in Portugal, vacation rental generates between 1.5× and 3× the revenue of equivalent traditional renting — but involves more operational costs. The net income difference depends mainly on: occupancy rate achieved, property location, active management capacity, and operating costs. Use the calculator with your property's equivalent rent to see the concrete comparison. For a qualitative analysis, read our article short-term rental vs traditional rental — key differences.

Under Category B (registered business activity): progressive income tax on taxable income (revenue × coefficient 0.35 for apartments), plus social security of 21.4% on 20% of revenue (from the 13th month onwards). If annual revenue exceeds €15,000, VAT at 23% applies. Under Category F (property income): income tax at a flat rate of 28% on net income (revenue minus deductible expenses), with no social security. For a detailed breakdown, use the Short-Term Rental Tax Simulator or read our complete guide to vacation rental taxes.