Lease Loss Carryforward Calculator

During lease-up, the property often runs at a loss. This calculator tracks cumulative losses and shows how long until the carryforward is extinguished after stabilization.

Monthly operating loss during lease-up

Stabilized monthly NOI

Lease-up months

Cumulative lease-up loss

$1,500,000

Months to recover post-stabilization

10 mo

Total months to breakeven

2 yr 1 mo

How the math works

Lease-up loss = burn-off until stabilization. After stabilization, NOI finally positive — pays back the loss over time.

Construction loans often include 'interest reserve' to cover the burn-off. Know your cumulative number so reserves and equity are sized right.

How to Use

Enter monthly operating loss during lease-up.
Enter stabilized monthly NOI.
Enter lease-up months.
Read cumulative loss and months to recover.

Frequently Asked Questions

Is this accounting or cash?

Cash. Lease-up loss = cumulative negative operating cash flow during burn-off. Separate from GAAP NOL carryforward (which has tax rules).

Why track it?

Most lease-up deals are funded with interest reserves and equity. Knowing cumulative loss lets you size reserves and equity accurately.

Typical burn-off?

Garden multifamily: $50k-$200k/month loss for 12-18 months. Urban high-rise: $300k-$1M+/month for 18-24 months. Depends on scale and rent-up pace.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.