Reverse Exchange Cost Calculator

Reverse exchanges cost more than forward. This calculator sums the premium.

Replacement value

EAT fee %

Carry months

Monthly carry

Additional legal

Total reverse cost

$112,500

EAT fee

$22,500

Carry total

$72,000

How the math works

EAT fee = replacement × rate. Carry = months × monthly. Total = EAT + carry + legal.

Reverse 1031 costs can consume 1-3% of replacement value, but the replacement property opportunity is usually worth multiples of the incremental cost. Run the math: if the property you can secure via reverse exchange would sell for 10-15% more in a retail offering, the reverse cost is the cheapest thing you'll pay for that deal.

How to Use

Enter replacement property value.
Enter QI/EAT fee %.
Enter carry months before relinquished sells.
Enter monthly carry cost.
Enter additional legal.
Read total reverse exchange cost.

Frequently Asked Questions

When used?

Buyer finds replacement property first. Can't close on relinquished in time. EAT (Exchange Accommodation Titleholder) takes title to replacement or relinquished until deal completes. Typically used when replacement has sharp timeline (auctions, off-market).

Cost premium?

Standard 1031: $800-3,500 QI fee. Reverse: $5,000-25,000 EAT fee plus: title costs, potentially additional mortgage, carry cost until relinquished sells. 2-5x cost of forward exchange, justified only for hard-to-replicate opportunities.

Timeline limits?

180 days to complete (same as forward). Relinquished property must be identified in 45 days. EAT must dispose within 180 days. Failure = regular taxable sale of relinquished with boot treatment on any recognized gain.