Start with the calculator: you only need three figures
Open the calculator and adjust the average nightly rate, expected occupancy and monthly operating costs. The result updates immediately to show estimated gross revenue, costs and net income before tax.
If you do not yet know the exact figures, begin with a cautious assumption. Then repeat the estimate with a middle and stronger scenario. Comparing three outcomes is more useful than searching for one perfect number.
The estimate is indicative and does not replace an assessment of the property, local demand or legal and tax obligations. It helps reveal which assumptions matter most and which questions to ask before proceeding.
- Average nightly rate: what you expect to charge across the year.
- Occupancy: the percentage of available nights you expect to sell.
- Monthly costs: cleaning, linen, supplies, platforms, maintenance and operational support.
The market exists, but it varies across Portugal
In 2024, Portugal recorded 80.4 million overnight stays and 31.6 million guests in tourist accommodation. Portugal's short-term rental category, legally known as Alojamento Local, represented 15.0% of overnight stays, according to Turismo de Portugal using data from Statistics Portugal, the Bank of Portugal and Turismo de Portugal.
For a home in Central Portugal, the context is different from Lisbon or the Algarve. In the 2024 regional analysis, the Centre recorded 49.3% room occupancy and a €32.8 RevPAR in traditional tourism accommodation. These are not short-term rental rates, but they show why location and seasonality belong in the calculation.
In Alojamento Local properties monitored by Lighthouse for Turismo de Portugal, monthly occupancy in the second quarter of 2025 ranged from 54.1% to 55.3%, while the average daily rate rose from €134.1 in April to €169.5 in June. This is a national market reference, not a promise for an individual property.
The simple calculation: nights sold × average price
The first estimate is straightforward: available nights × occupancy rate × average nightly price. You then need to subtract cleaning, linen, supplies, commissions, maintenance, insurance, tax and any management the owner chooses to delegate.
To keep the calculation transparent, the examples below assume a whole home available 365 days a year. They are illustrative gross revenue scenarios before expenses and tax, and do not include any separate cleaning fee charged to the guest.
Occupancy applies only to nights made available. If the owner blocks part of the calendar for personal use, potential revenue falls. For example, 270 available nights at 45% occupancy and an average price of €110 represent about 122 nights sold and €13,365 in gross revenue.
| Scenario | Occupancy | Nights | Nightly rate | Per year | Monthly avg. |
|---|---|---|---|---|---|
| Conservative | 30% | 110 | €85 | €9,308 | €776 |
| Middle | 45% | 164 | €110 | €18,068 | €1,506 |
| Strong | 60% | 219 | €135 | €29,565 | €2,464 |
What could remain after operations?
Gross revenue is not net income. Instead of assigning a fixed cost to management, the table shows what would remain from the middle scenario of €18,068 gross if operations consumed 15%, 25% or 35% of revenue.
These percentages only test how sensitive the calculation is. They are not a market benchmark or Laro price list. Actual costs depend on commissions, cleaning, linen, supplies, utilities, insurance, maintenance and delegated tasks. A pool, garden, frequent turnovers or longer travel can increase costs.
The figures remain before tax, finance, major works and the owner's personal use of the home.
| Assumed costs | Annual costs | Annual result | Monthly avg. |
|---|---|---|---|
| 15% of revenue | €2,710 | €15,358 | €1,280 |
| 25% of revenue | €4,517 | €13,551 | €1,129 |
| 35% of revenue | €6,324 | €11,744 | €979 |
What increases or reduces the result
The nightly price is only part of the equation. A home can have good demand and still lose income through weak photography, slow replies, outdated calendars or an inconsistent experience between stays.
Before publishing, compare the property with nearby accommodation and define a seasonal strategy. A summer price should not automatically be applied in winter; a mid-term stay may make sense in quieter months and reduce the number of turnovers.
- Location, access, parking and proximity to points of interest.
- Number of bedrooms, realistic capacity and the quality of outdoor areas.
- Pricing by season, minimum stay and local demand.
- Quality of photography, listing and response time.
- Cleaning, linen, maintenance, check-in and guest support.
Before you proceed, confirm the framework
In Portugal, an Alojamento Local is registered through a prior communication procedure, and the relevant municipality may object. Once the registration number has been issued, proof of mandatory liability insurance must be submitted before trading begins and again whenever the policy is renewed or changed.
Municipal rules, tax obligations, safety requirements and condominium rules where relevant must also be checked. These can change and should be confirmed through the official gov.pt guide, the municipality and appropriate professionals before advertising.
Laro can help review the home, organise preparation and coordinate cleaning, linen, access, suppliers, check-in and check-out. The owner remains responsible for legal, tax, financial and licensing decisions, as well as approving expenses outside the agreed plan.
