How this number is made
Holding costs are the bills that arrive whether or not the property is finished: loan interest or hard-money payments, tax, insurance, utilities, and lawn. This page multiplies the monthly total by the months you type.
- Add every monthly bill into the one figure.
- Months should include the time to sell, not only the time to renovate.
Formula
Holding cost = monthly cost × months.
Worked example
With the figures already in the form, cost to carry is $13,200.
Questions
Do I include the down payment?
No. That is capital, not a holding cost. Interest on the money is a holding cost if you want to count it.
What if a month is partial?
Use a fraction, such as 6.5. The page does not round to whole months.