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Monthly Carrying Cost Calculator

Any vacant property generates a steady monthly bill regardless of activity. This calculator totals the key line items — mortgage, taxes, insurance, HOA, utilities, maintenance reserve — so you know the true cost of holding.

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Monthly carrying cost

$2,795

Daily cost

$93.17

Annual cost

$33,540

How the math works

Monthly carrying cost applies to any vacant or transitional property: flip in progress, inherited house going to sale, listing without tenants, 1031 exchange holding period. Calculate once, revisit whenever one of the inputs changes.

Maintenance reserve is often skipped but always comes up — leaky roof, HVAC breakdown, appliance failure. 1% of value annually is a reasonable baseline; older homes need more. Vacancy premium covers higher insurance and any security monitoring.

How to Use

  1. Enter monthly mortgage payment (P&I).
  2. Enter monthly tax, insurance, and HOA.
  3. Enter monthly utilities (heat, electric, water must stay on).
  4. Add maintenance reserve (1% of value / 12 is a baseline).
  5. Add vacancy premium for higher insurance and security.

Frequently Asked Questions

Is maintenance really 1% / year?

Baseline for newer homes. Older homes run 1.5-2%. Historic and fixer-upper properties 2.5%+. Budget by age and condition — deferred maintenance compounds fast on unoccupied property.

How much extra for vacancy insurance?

Vacant-home policies run 2-5x standard homeowner. Most insurers require a vacancy permit or endorsement after 30-60 days unoccupied. Failure to notify the insurer can void a claim.

Should I include opportunity cost?

For detailed analysis, yes — the down payment and equity could earn elsewhere. At 8% annualized on $80k equity = $533/month additional opportunity cost. Include when comparing to options that free up the capital.

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