EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Vacancy Drag Calculator

Vacancy combines lost rent with continuing carry. This calculator quantifies annual drag.

$
%
$

Annual drag

$626,400

Lost rent

$576,000

Carry on vacant space

$50,400

How the math works

Drag = GPR × vacancy + fixed carry × vacancy. Captures rent loss + proportional carry.

Compare drag cost to accelerated leasing costs. Spending $50k on concessions to cut vacancy from 12% to 8% on a $5M GPR asset saves $200k+ in drag — clear positive NPV.

How to Use

  1. Enter gross potential rent.
  2. Enter vacancy rate %.
  3. Enter annual fixed carry.
  4. Read annual drag.

Frequently Asked Questions

Drag vs vacancy loss?

Drag includes (1) lost gross rent, (2) fixed carry on vacant space (taxes, insurance, debt). Pure vacancy loss only captures rent; drag shows full cost.

Stabilized vacancy?

Multifamily 5-7% market-typical. Office 10-15% at stabilization. Retail 5-8%. Industrial 3-5%. Use as baseline; excess above baseline is drag.

Drag calc application?

Identifies which assets need leasing push. A property with 15% vacancy and $5M GPR carries ~$750k lost rent annually — often enough to restructure leasing commissions or reduce rents to lease.

How does this affect my portfolio-level metrics?

Single-asset impact rarely matters in isolation for a portfolio of 20+ assets, but systematic patterns do. If the same issue shows up across 10% of your portfolio, the aggregate impact is meaningful. Track this metric at the portfolio level quarterly. Institutional operators aggregate these monthly into a KPI dashboard for investors and lenders.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →