The three numbers that make or break an Airbnb investment
Average daily rate (ADR) and occupancy multiply into revenue; the cost ratio decides how much of it you keep. A 10% error in ADR or occupancy changes net yield by far more than 10%, because fixed costs do not move. Always stress-test with a pessimistic case: occupancy −15 points, rate −10%.
- ADR: check listings of the same type and bedroom count within 1 km, not the whole city
- Occupancy: European city-centre apartments 55–75%, coastal and alpine 40–60% with strong seasonality
- Cost ratio: 20–30% self-managed, 35–45% with a co-host or agency
Airbnb-specific costs
Beyond the platform's host fee (about 3% under the split-fee model, 14–16% under host-only), Airbnb operations create costs long-term rentals do not have: frequent cleaning, linen, consumables, guest communication, higher wear and, in many cities, a tourist tax you must register for and remit.
- Platform fee: 3% (split) or ~15% (host-only) of the booking
- Cleaning: charge guests, but budget for turnovers between short stays
- Furnishing and setup: €8,000–20,000 for a two-bedroom, amortised over 5–7 years
- Vacancy between bookings: even 65% occupancy means 128 empty nights a year
Regulation: the variable calculators ignore
Amsterdam caps whole-home letting at 30 nights a year. Paris allows 120 for a primary residence and requires a change of use for a second home. Barcelona is phasing out tourist licences by 2028. Vienna limits residential-zone letting to 90 days. A calculator that shows 6% net on a flat you cannot legally rent is worthless — check the rules for the exact city before the numbers.
Airbnb vs long-term rental
Short-term letting typically grosses 1.5–2.5× a long-term lease in tourist cities, but nets far less of it and carries regulatory and platform risk. Terrivio's report shows both scenarios side by side so you can see whether the extra work and risk are paid for.
How to calculate Airbnb ROI
- Find segment ADR and occupancy. Look at comparable listings — same type, bedrooms and neighbourhood — and use annual averages, not peak-season prices.
- Compute revenue and NOI. Revenue = ADR × 365 × occupancy. Subtract platform fees, cleaning, management, utilities, insurance, tourist-tax admin and maintenance.
- Check legality first. Confirm licence requirements and night caps for the city. If you cannot rent year-round, cap the occupancy accordingly.
- Divide by total investment. Include acquisition costs and furnishing. Compare the net yield with a long-term rental of the same flat.
Frequently asked questions
What is a good ROI for an Airbnb in Europe?
A realistic net yield for a legal, well-located Airbnb in Europe is 3–6% before financing. Higher figures usually involve heavy self-management or regulatory risk.
How much does Airbnb charge hosts?
Around 3% per booking under the split-fee structure (guests pay a service fee) or roughly 14–16% under the host-only fee model used for many professional and software-connected hosts.
Is Airbnb still profitable in Europe in 2026?
Yes in markets with clear licensing and year-round demand; increasingly not in cities with caps or licence freezes. Regulation is now the first filter, yield the second.
Can Terrivio analyse a specific Airbnb investment?
Yes. Paste the listing URL from a property portal; Terrivio pulls market nightly rates and occupancy, applies country taxes and city STR rules, and returns yield, cashflow, risk and IRR.