From the nightly rate to the cash the owner keeps
Change sold nights, the daily rate and costs, and watch a 10.8% gross yield become a single-digit cash return. A hypothetical Marbella-style apartment, every step shown.
Follow the money through to the owner
Change the operating assumptions and watch the gap open between the headline yield and the cash the owner keeps. Capital and financing stay fixed so each change is visible on its own.
Hypothetical teaching model, before investor-level tax. Not a market benchmark or forecast. The sensitivity matrix holds variable and fixed costs at the values entered; the named downside scenario also raises fixed costs to €7,700. Break-even: 142 sold nights at the current daily rate.
Five numbers, one chain
Each measure answers a different question. Read them in order, from the listing to the owner.
Gross yield
The figure in most listings. It ignores costs and acquisition expenses.
Operating yield
Revenue after variable and fixed costs, on the full €340,000 invested.
Debt cover (DSCR)
Below 1.0× the property cannot pay its own mortgage.
Cash-on-cash
What the owner keeps after debt and reserve, on the €160,000 of equity.
Break-even nights
The sold nights needed before the owner earns anything.
Holiday rental economics: common questions
Can you tell me whether a property can be a holiday rental?
We model the economics of each feasible strategy and flag the regulatory questions: regional VUT registration, municipal planning and community statutes. Whether a specific property may operate as a tourist rental must be confirmed by a qualified Spanish property lawyer.
Is this calculator a forecast?
No. It is a teaching model with a hypothetical property. It shows how the headline yield turns into owner cash under the assumptions you enter. It does not predict what any real property will earn.
Why is cash-on-cash so much lower than the gross yield?
Gross yield divides revenue by the purchase price only. Owner cash subtracts variable and fixed costs, mortgage payments and a reserve, and divides by the equity actually invested. Each step removes money or changes the base.
Is tax included?
No. Results are before investor-level tax. Non-resident income tax and the treatment of expenses depend on your residence and structure, and need advice from a Spanish tax adviser.
Want this for your own rental?
A rental performance review reconciles your real bookings, payouts and costs, and shows where the owner result can improve.