For real estate investors
Holding Cost Calculator
Every month you hold a property costs money, even when nothing is happening on site. Enter your loan, carrying costs and timeline to see your monthly cost, the total for the whole hold and where the money goes.
Calculator and results
Where the money goes
- Loan interest
- $9,900 (54.1%)
- Lender points
- $3,600 (19.7%)
- Property taxes
- $1,800 (9.8%)
- Insurance
- $900 (4.9%)
- Utilities
- $1,500 (8.2%)
- Other
- $600 (3.3%)
For estimates only. Not financial, tax or lending advice.
How it’s calculated
- Interest is interest-only: loan amount times the annual rate, divided by 12 for each month.
- Lender points are charged once as a percentage of the loan, so they are included in the total but not in the monthly cost.
- Property taxes and insurance are the yearly amounts divided by 12. Utilities, HOA and other costs are entered per month.
- Total cost is the monthly cost times the number of months, plus the points. The breakdown shows each category and its share of the total.
Holding Cost Calculator questions
What counts as a holding cost?
Anything you pay because you own the property while you rehab and sell it: loan interest, lender points, property taxes, insurance, utilities, HOA dues and similar costs.
Why does the monthly cost leave out points?
Points are a one-time fee at closing, not a monthly expense. They are added into the total cost for the hold.
Does this work for amortizing loans?
It assumes interest-only payments, which is common on hard money and private loans. For an amortizing loan, the interest portion would be somewhat lower than this estimate.
How long should I plan to hold a flip?
That depends on the scope of the rehab, your market and your permits. Try a few different timelines to see how quickly costs add up.
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