Holiday Let Mortgage Calculator
Use this holiday let mortgage calculator to estimate the loan and monthly payment for a holiday let property, and the rental income it could produce. Holiday lets earn unevenly through the year, so this calculator turns your nightly rate, weeks let and occupancy into an annual income estimate alongside the mortgage figures.
Calculator
How to use this calculator
- Enter the property price, deposit, interest rate and term as for any mortgage.
- Enter the nightly rate, how many weeks a year you expect to let, and the occupancy percentage within those weeks.
- Click Calculate to see the loan and payments next to the estimated annual and average monthly rental income, the yield and the interest cover ratio.
Worked example: a £300,000 property with a £90,000 deposit gives a £210,000 loan at 70% LTV. At 5.75% over 25 years the repayment payment is about £1,322 per month. At £120 a night for 30 weeks at 80% occupancy, the estimated annual income is £20,160, a 6.72% gross yield.
Frequently Asked Questions
How is a holiday let mortgage different from a buy to let mortgage?
Holiday lets are usually assessed on short-term letting income rather than a single monthly tenancy, and lenders often require a larger deposit and evidence of letting demand, such as local occupancy data.
Why does this calculator ask for occupancy?
A holiday let is rarely full all year. Occupancy turns a headline nightly rate into a realistic income estimate instead of assuming every night is booked.
Do lenders count all of the rental income?
Not always. Some lenders use only part of the projected income, or require a minimum personal income alongside it, so the figure here is an estimate, not a lending decision.
What costs does this calculator leave out?
Cleaning, platform fees, management, maintenance, utilities, insurance and tax are all excluded, so net income will be lower than the gross estimate shown.