Carry Cost of Price Reduction Calculator

Cutting price is painful; continuing to carry can be worse. This calculator compares.

Current list price

Proposed reduction %

Monthly carrying cost

Days on market

Break-even hold days

304

Reduction $

$42,500

Cumulative carry so far

$8,400

How the math works

Break-even = reduction ÷ daily carry. If you'd hold longer than that without selling, cut is accretive.

Sellers often resist cuts due to anchoring. But every month at wrong price = 30 days of carry + market staleness + serious-buyer loss. Cut sooner and firmly; single substantive cut beats three small ones.

How to Use

Enter current list price.
Enter proposed reduction %.
Enter monthly carrying cost.
Enter days on market.
Read break-even hold days.

Frequently Asked Questions

When to cut?

When cumulative carry cost exceeds cut amount AND days-on-market exceed comparable velocity. No shown interest at current price = cut.

How much?

3-8% typical first cut. Meaningful but not alarming. 2% rarely moves market; 10%+ signals distress. Multiple small cuts signal weakness; one substantive cut refreshes listing.

Timing?

Every 30 days of market time, reassess. Don't cut within first 14 days — too early. Don't wait past 90 — market stales. Hit cut at day 30-45 of no-offers period.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.