Holding Costs Calculator
Calculate monthly holding costs for fix and flip projects. Track interest, taxes, insurance, and utilities during renovation.
How it works
Holding costs = Monthly interest + taxes + insurance + utilities + other costs × hold period.
Example
$2,000/month × 6 months = $12,000 total holding costs.
FAQ
What are holding costs in real estate?
Monthly expenses to maintain property during renovation or until sale, including loan interest, taxes, insurance, utilities, and maintenance costs.
How can I minimize holding costs?
Work with experienced contractors, have detailed renovation plans, secure permits early, and maintain realistic timelines to reduce unexpected delays.
Should I include property taxes in holding costs?
Yes, property taxes continue during ownership. Pro-rate annual taxes to monthly amounts for accurate holding cost calculations.
What if renovation takes longer than expected?
Budget 20-30% extra time for delays. Each additional month adds significant costs, especially with high-interest renovation loans.
Do holding costs affect flip profitability?
Absolutely. Extended hold periods can eliminate profit margins. Factor realistic timelines into your initial purchase and renovation budget decisions.