Holiday Home vs Hotel Calculator

Holiday home vs hotel cost calculator compares ownership vs staying in hotels. 400k holiday home over 30 years (13,333/year) + 8k carrying = 21k/year vs 2,000/week × 6 weeks = 12k/year hotels. Hotels cheaper 9k/year unless intensive use. Holiday home only wins if used 10+ weeks/year.

Example: 400k holiday home, 30-year amortisation 13,333/year + 8k annual carrying (mortgage interest, local property tax, maintenance, insurance). Total annual 21,333. Vs 2,000/week × 6 weeks = 12,000 hotels. Hotels cheaper by 9,333/year. Break-even: 11+ weeks of hotel equivalent annually.

Holiday home considerations beyond cost: (1) Personal use convenience (own beds, kitchen, no booking). (2) Investment property potential (rent out unused weeks - 100k+ revenue possible for popular locations). (3) Capital appreciation 3-5% historic). (4) Single location (vs hotel variety). (5) Maintenance burden. (6) Capital tied up. Best for: holiday-loving family, intensive use (8+ weeks/year), long-term horizon (15+ years), can rent out unused. Most retail buyers don't use enough to justify - rent holidays cheaper. Holiday home as investment: see holiday-home-vs-investment-calculator for full BTL analysis.

Quick example

With holiday home purchase price of 400,000 and ownership period of 30 years (plus annual carrying costs of 8,000 and hotel cost per week of 2,000), the result is -9,333.33. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Holiday Home Purchase Price, Ownership Period (years), Annual Carrying Costs, Hotel Cost per Week, and Weeks Used per Year. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the option with the lower calculated total changes.

What's happening under the hood

Annual savings = hotel total - (home amortised + carrying costs). The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this without guilt

The figure here isn't a verdict on whether the spending is "worth it". That judgment is yours to make. What the number does is shift the question from "can I afford this?" to "is this what I want my money doing over a decade?". Both questions matter.

What this doesn't capture

The tool prices the money; it can't weigh the enjoyment. A coffee habit, gym membership, or streaming bundle might cost what the math says but deliver value that's harder to quantify. Use the number to make the trade-off visible — the decision is yours.