Entitlement Carry Burn Rate Calculator

Entitlement takes months; carry compounds.

Land basis

Debt balance

Debt rate %

Annual taxes

Monthly consultants

Months to entitlement

Total carry cost

$1,339,500

Monthly carry

$74,417

Carry % of basis

0.2%

How the math works

Monthly interest = debt × rate / 12. Monthly taxes = annual / 12. Monthly = interest + taxes + consultants. Total = monthly × months.

$31.5k interest + $7.9k taxes + $35k consultants = $74.4k/mo. × 18 = $1.34M total carry = 20.6% of basis.

How to Use

Enter land basis.
Enter debt balance.
Enter debt rate %.
Enter property taxes annual.
Enter entitlement consultant monthly.
Enter months to entitlement.
Read total carry cost.

Frequently Asked Questions

What drives carry?

Land debt interest (typically 7-12% bridge/acquisition loan). Property taxes (0.8-2.5% of basis annually). Legal, engineering, consultant fees ($20k-100k/mo). Insurance, security, minimal maintenance. Adds up to 12-20% of land basis per year in carry.

Typical timelines?

Simple rezone: 6-12 months. Complex mixed-use: 18-36 months. Large PD/PUD with NEPA: 36-60 months. Appeal risk extends another 12-24 months. Fast-track by-right sites: 3-6 months. Plan realistically from start.

Reducing carry?

Contingent purchase contracts (pay only if entitled). Seller financing to defer land payment. Minimize carry-by-month team (key staff + contract consultants). Phase entitlement (preliminary approval first). Sell partial pre-entitlement to capitalize carry.