Free calculator

Holding Cost Calculator for House Flips

Quick answer

Holding costs are the recurring expenses of owning a flip while you renovate and sell — loan interest, property taxes, insurance, and utilities. They typically run $1,000–$3,000 a month and accrue every month you own the property, so a longer timeline directly eats into profit. This calculator totals them across your project.

Total holding costs
$10,800
over 6 months
Per month
$1,800
interest + taxes + insurance + utilities

Total Holding Costs = (Monthly Interest + Taxes + Insurance + Utilities) × Months Held

How it works

Holding costs (also called carrying costs) are the silent profit-killer of house flipping. Every month a project runs, you keep paying loan interest, property taxes, insurance, and utilities whether or not work is getting done. Beginners routinely underestimate them and watch a projected profit shrink as the timeline slips.

Enter your monthly carrying costs and how many months you expect to own the property to see the total. Run it again with a longer timeline to see how much a delay really costs — it's usually more than people expect, which is why speed is so valuable on a flip.

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This tool covers one number. FlipOS underwrites the full deal across 12 strategies — ARV, the 70% rule, rehab, holding costs, and worst/base/best scenarios — then manages the project end to end. 14-day free trial, no credit card.

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Frequently asked questions

What are holding costs in house flipping?
Holding costs are the recurring expenses of owning a property during a flip — loan interest, property taxes, insurance, utilities, and HOA dues. They accrue every month you hold the property, before and during the sale.
How much are holding costs on a flip?
They commonly run about $1,000–$3,000 per month depending on the loan size, property value, and local taxes. The total depends heavily on how long the project takes, which is why timeline discipline matters.
How do you reduce holding costs?
Shorten the timeline with a clear scope of work, materials ordered early, and a reliable contractor; use cheaper or interest-only financing where appropriate; and list the property as soon as it's ready rather than waiting.